Today we’d like to introduce you to Ron Bork.
Hi Ron, can you start by introducing yourself? We’d love to learn more about how you got to where you are today?
I’m a lifelong mortgage originator (since 1983, yikes!) and owned a mortgage company from 1997 to 2011. For most of the 2000’s, I have coached and taught hundreds (probably thousands by now) of homeowners how they can radically cut their interest costs by using a line of credit in exactly the right way.
Through my coaching and by utilizing the right type of financing, my customers have:
~ Lowered their interest costs by tens and sometimes even hundreds of thousands of dollars.
~ Paid off their mortgages – in full – in just 5 to 8 years
~ Accomplished both with their current income and spending habits
The lending industry today is hell bent on selling 30-year fixed rate mortgages due to the strong secondary market (Fannie Mae & Freddie Mac) that immediately purchases the loans they originate. This in turns provides the liquidity to continue operations. Fixed rate mortgages are very profitable, possibly the most profitable banking product they offer.
Lenders also know that by offering only these long-term fixed rate loans, that they have a built-in customer base for refinances in the future. They sell these mortgages by pushing the narrative that these are safer mortgages; I can prove they are not. The great majority of foreclosures in the mortgage credit implosion and subsequent recession in 2008-2010 were long term fixed rate mortgages. The financing that I offer did not have a single foreclosure during that period. Hard to believe but my company (CMG Home Loans) has all the data and can document this fact.
Another way they sell these loans is by pushing interest rates – even advising us to “Shop for the best rate!” and the accompanying monthly payment. By having us focus on the interest rate and payment, we lose sight of how much interest we wind up paying due to these restrictive loans.
They are restrictive in that any extra money we throw at them to lower overall interest costs are gone… we cannot have those funds back. That one characteristic quite literally prevents us from aggressively paying back the loans, something we should all be doing with our debts.
Now imagine a mortgage that utilizes all your income and cash – some of it temporarily, some permanently, to lower interest costs. Imagine if the money you keep in savings and that flow through your checking accounts would be able to “offset” the principal balance of your mortgage. Those funds are under-utilized by practically everyone. Well, now there’s a way to put those funds in action to drive down interest costs yet – and this is key – remain 100% available. Any and all money put into this financing can be re-accessed for any reason without needing to refinance or even make a phone call for permission. This is true open-ended mortgage lending. And it is a complete life changing strategy. I paid off my still fairly substantial balance in under 5 years and as mentioned before, have hundreds if not thousands have happy homeowners. I have the testimonials to prove it.
Can you talk to us a bit about the challenges and lessons you’ve learned along the way. Looking back would you say it’s been easy or smooth in retrospect?
Struggles? Yes, plenty. But mainly over mortgage regulations that were put into effect in 2010. These days, if you work for a mortgage banking operation, you have to be individually licensed in each state you do loans in. If you work for a bank, you don’t have to do that. I worked for banks from 2011 to 2019. But the best mortgage financing product in the country happens to be a proprietary product offered only by a California mortgage company, not a bank.
When I discovered the loan in 2019, I jumped ship because I knew my customers would want this loan. And I was right. But I gave myself a big pain in the rear each year because many states have annual continuing education requirements and all of them charge fees for annual licensing. All that is time consuming and costly. And my customers have no idea that I go through all that every year just so I can continue providing the very best mortgage my customers deserve.
Appreciate you sharing that. What else should we know about what you do?
Hmmm… I think I pretty much answered this question. But to expand on it, I cannot guarantee this as fact, but I am confident that no other loan officer has completed more of these types of loans over the past ten years as I have. I am one of a handful of loan officers that concentrates all their efforts on this one loan. But the thing is, the financing along with the strategy works. But not for everyone! But it’s quite simple to determine if this will provide benefit for any particular homeowner or home buyer. And I make that determination with every single prospective customer I come across. If it’s not right for someone, I will be the first to tell them.
Alright, so to wrap up, is there anything else you’d like to share with us?
The lending industry has conditioned us into only taking the mortgages they want to sell. Homeowners and buyers don’t realize that these loans are better for the lender but not great for them.
Consider… You get a 30-year fixed rate mortgage at today’s interest rates – around 6%. You think, well, it’s not as low as rates were but it’s also quite a bit lower than what they were a year ago. So, you count your blessings. Now it’s 10 years later… you’ve made 120 payments. You’ve paid off 17% of the balance you started with, but your total payments come to 72% of the amount you borrowed. Think about that. And people sign up for these loans voluntarily! But only because they don’t know there’s a better way. My goal is to show thousands of people how to beat the banks at their own game.
Contact Info:
- Website: https://www.MrHeloc.com
- LinkedIn: https://linkedin.com/in/ronbork
- Other: Online calendar – www.RonBork.as.me
