How does the digital mortgage revolution impact you? We use high tech tools and gadgets to help you have a better understanding of your loan options. Chong invites Dave Savage to the show to talk about Mortgage Coach and Total Cost Analysis.
GDW It’s Mortgage Monday which means its time to get the best tips for home buying and refinancing. I’m here with Chong Yi of The Yi Team at Fairway Independent Mortgage Corp. He is joined this week by Dave Savage, owner and founder of Mortgage Coach. He’s a mobile tech pioneer who’s committed to educating and preparing lenders for the digital mortgage revolution. Welcome to both of you!
CHONG Hey Kristen.
DAVE Nice to be here.
The Digital Mortgage Revolution
GDW Chong nice to see you, Dave great to have you here. I want to start with you. Mortgage Coach. What is this all about?
DAVE Mortgage Coach helps the best loan officers provide the best advice to families who are thinking about buying a home or refinancing a home.
GDW So it’s taking something that could be very complicated or convoluted for home buyers, for first time home buyers especially.
DAVE Oh, it’s stressful! Rent vs. Own analysis. Helping families make a better decision around the mortgage and around home ownership.
GDW So what made you decide to create this?
DAVE I was a loan officer once upon a time. And it was one of those things where “I wish I had this better way of doing things”. That led to the invention of Mortgage Coach, almost 20 years ago.
CHONG Well with Chong we talk all the time about how home buying and refinancing has gone into the digital age. We talk about the online listings and postings. This is just a continuation of that. Making it easier and less stressful. Not just for home buyers, but for you as well.
CHONG Absolutely. Music to my ears. I’ve got to tell you this is a huge honor for me because Dave, and he may not know this, but he’s been a mentor of mine for a very long time. And his, or “our” Mortgage Coach, right?
DAVE That’s right. It’s yours now.
Understanding Your Loan Scenarios
CHONG It’s the greatest technology. It’s been a game changer for me because what it does is, it separates the average loan officer with the new digital mortgage advisor of tomorrow. But what it really does, is it helps us illustrate the benefits of certain loan programs and loan scenarios. [See Maximizing Your Financial Literacy for more about loan officers and mortgage advisors.]
CHONG It allows us to [see graphic] to give different options so we can maximize both your short term and long term wealth as it relates to your mortgage and the owning of your home.
GDW And lays it out so simply for those of us in layman’s terms.
“Should I pay points? Should I not pay points? Should I do a 5 or 30 year loan?”
DAVE Our goal is to make the loan officer the hero. They’re providing options beyond the average loan officer and help the family make a more confident decision. It’s like “oh wow, the mortgage is confusing. Should I pay points? Should I not pay points? Should I do a 5 or 30 year? ” Make it easy for the family and make the loan officer a hero.
GDW So home buying is stressful. Someone wants to know that they are getting into their dream home the right way. Paying the right amount of money. They want it to be a nice smooth transition, which is what you guys want for the home buyer or home seller to feel as well.
Your Mortgage Is Not A Commodity
CHONG Absolutely. Nowadays there is a commoditization? The idea of the mortgage becomes a commodity. In actuality it should be looked at in another way. Nowadays you can go online, get a loan. You can walk into a grocery store and get a loan. Right? But getting a mortgage is not like buying toothpaste or buying anything at a grocery store. It affects you long term. It affects your finances and how your wealth is going to be created, over the life of your world, your financial world. So for me, for us, we’re looking at a different way to convey our message. I can talk about what we can do with certain down payment strategies. But at the end of the day, it’s hard to convey that. It’s hard to illustrate that. Now we have something that’s kind of cool. With the video. Mortgage Coach in general give us so many things that we can do to make it easier for you to understand.
GDW The thing about home buying is it’s a visual process. You’re buying something visual. That’s why the staging is important. That’s why all of this is important. You’re adding to that to make that visual. That’s what we’re in there for.
“We take those things that can be complex, things that most loan officers don’t even talk about…We make that easy.”
DAVE Yeah, visual. I think a lot of families just think about monthly payment, cash to close. They don’t look at, what’s that going to cost me over 5 years? And which loan is better? Should I prepay my mortgage so that I pay off my home faster? Should I invest that difference? We take those things that can be complex, things that most loan officers don’t even talk about. Most families don’t even know to ask about. And we make that easy.
GDW For refinancing as well?
GDW It’s a major tool.
CHONG The refinancing part is awesome because we can say, in a lot of cases, all right even if you’re getting a higher interest rate, let’s talk about if you were to pay down some debts. Let’s look at the overall liabilities compared to where it would be. Too often times as consumers we’re putting different buckets of liabilities in different buckets. You can have your mortgage, you can have your credit card, you can have your car loan, you can have your student loan.
“At the end of the day you’re going to have a bigger return on investment and you’re going to pay less overall.”
CHONG In actuality, if your mortgage payment goes up, and you’re able to pay down or pay off the other debts. At the end of the day you’re going to have a bigger return on investment and you’re going to pay less overall.
GDW Oh! Okay.
CHONG And Mortgage Coach allows us to illustrate that.
DAVE It’s a Total Cost Analysis. So families are looking to get a loan. Don’t just get a fee worksheet! With only one option, closing costs. Get a Total Cost Analysis showing the cost over time.
Chong’s Shoe Analogy
CHONG Can I make an analogy? I messed this up last time. It’s my shoe analogy.
GDW Go ahead, you’ve got time.
CHONG I know you love shoes. I do too. There are so many shoe options that are out there. The problem we have is that not every shoe fits every person. So the technology that we have with Mortgage Coach and Total Cost Analysis allows us to identify the best shoe that fits your foot.
GDW That’s a good way to end on that one! Chong and Dave, thanks so much for being here and informing us. If you want to inquire about a new mortgage you can contact Chong Yi and The Yi Team at www.theyiteam.com
Want to see more Dave Savage? Here’s Chong’s interview on Mortgage Coach, Modern Mortgage Experience.
The digital mortgage revolution is available to all of our borrowers. Give Chong a call to use these great tools to help you build your long term wealth. Find out more about The Yi Team and our mortgage advisors, here.
Go to our Resources page for mortgage calculators and glossary.
Special thanks and shout out to Dave Savage. Appearing on Mortgage Monday with me was a huge honor. I appreciate you sharing your expertise today, and your continued mentorship!