RateGravity’s Founding Story
By Patrick Boyaggi
RateGravity was not formed in Silicon Valley or on Wall St. where ideas about technology and financial services are abound. Instead, it was founded in Boston, where I worked as a mortgage banking executive and was born out of my personal home financing experience, when I parlayed my unique access to industry resources into over $44,000 in savings.
I started the home financing process by using tools that are made exclusively for lenders to determine exactly how much I could afford and if I would be approved according to a universal set of underwriting guidelines. Armed with the knowledge that I would be approved for financing, I set out to find the best offer, even if it meant not using my own bank. I knew the importance of shopping because the Consumer Finance Protection Bureau states that rates can vary between lenders by as much as .50%.
I narrowed my search to a network of trustworthy community lenders that offer low rates, great service and have a deep understanding of the Massachusetts market. Admittedly, prior to RateGravity, this was only possible because of my connections in the industry. I had tens of thousands of dollars on the line, though, so I wasn’t going to rely on my bank for financing without knowing they were going to offer me the best terms.
Making A Deal
After finding a bank that was offering the best deal on the loan I wanted, I contacted that bank’s VP of Residential Lending and told her that I wanted to use her bank, but that my choice was contingent on her offering me an even lower interest rate than the one her bank was offering.
She understood that my loan was going to close because of the pre-work I had done and that there was no need to involve her Loan Originator (aka salesperson) because I had already done everything he would do. And because she didn’t need to pay him a sales commission, she could return the savings to me in the form of a lower interest rate (the average commission paid to a salesperson can drive up interest rates by as much as .50%).
Without paying the Loan Originator’s commission, the bank would make the same profit on my loan even if they provided me with a lower rate, so she agreed to the terms. This meant that I closed a loan with an interest rate substantially lower than everyone else.
RateGravity is Born!
This is when I realized, if I can get my home loan this way, why shouldn’t everyone else?
I had achieved my dream of homeownership and I had done so with better terms because I was a mortgage insider and was able to navigate an opaque system. This experience is what motivated me to start RateGravity, so that everyone can benefit from the same advantages I did when it’s time to get a mortgage.
RateGravity puts consumer’s interests ahead of the salesperson or any single lender by providing you with tools that were previously exclusive to the loan originator to ensure you qualify for a loan and to secure you exclusive access to a network of fully vetted community lenders that offer below market rates. To help you navigate the process, we assign every customer with a personal mortgage expert that will coach you through all aspects of the process, making sure you get a fair deal and enjoy a stress-free experience.
Our company’s mission is to get every customer the best deal available when financing their home and we welcome you to start here.