RightMortgage is unique because consumers can pick and choose the features they want. Each feature they select has a direct impact on the interest rate.
The features affecting the rate include:
Term (1-year, 3-year, or 5-year fixed)
Prepayment options (ranging from 5% right up to the traditional maximum of 20%)
Payment frequency (weekly, bi-weekly or monthly)
Length of rate guarantee (generally ranging from 30-120 days)
For example: “If a purchaser wants to close in less than 30 days, then there are some savings there, “ explains Tony Bartolomeo, Product Manager for Mortgage Alliance. “Conversely, if the rate hold goes past the traditional 90 days to 120 days, then the rate is up slightly.”
Here are the rates as of today…
1-year fixed: starts at 3.26%, fully-featured is 3.39%.
3-year fixed: starts at 3.62%, fully-featured is 3.79%
5-year fixed: starts at 3.78%, fully-featured is 3.99%
The RightMortgage is underwritten by Macquarie Financial, one of the biggest private label lenders (Paradigm Quest is another big white-labeller). Macquarie gives Mortgage Alliance brokers the choice of placement fees, either: trailers, “up-front” or a combination of both.
“Before the RightMortgage came along, consumers didn’t have the freedom to custom build their own mortgage rate, Says Bartolomeo. “ The ability to pick and choose features that impact the interest rate is a way to engage consumers and allows them to personalize their mortgage.”
When the product was first introduced it generated $2 billion dollars in sales in less than 24 months. Bartolomeo believes that sales in 2009 were just under $1 billion dollars.
One billion in production is no small feat for an exclusive brokerage product. It puts RightMortgage near the top of all white label mortgages in the industry.