Yale Roth M.A., M.Ed

Are You Getting Ripped Off By Using A Mortgage Broker?

This mortgage question is always at the top of a homeowners’ mind and that is “Am I overpaying by using a mortgage broker?”

Well, here’s the answer, “It depends.”

A lot of people are under the assumption that because the mortgage broker is a middleman, they are going to pay more for the mortgage refinance.

I’m always asked “Are you a mortgage broker or a direct lender?”

I’m a direct lender. However, I’ve worked as a mortgage broker for over 10 years.

Getting back to the question about whether the homeowner is overpaying by using a mortgage broker – the answer is maybe not.

Some mortgage brokers price their mortgages very competitively.

Just because the mortgage broker “brokers” the file to a mortgage wholesale lender, doesn’t necessarily mean the home owner is getting ripped off or overpaying for the mortgage.

I talk to many homeowners who are quoted mortgage rates from the big banks.  The mortgage loan rates that their being quoted aren’t competitive.  The big banks don’t always have to be competitive.

So just because it’s a big bank that’s quoting the mortgage rate, doesn’t mean it’s going to be a competitive mortgage quote.

As a homeowner looking to refinance their mortgage loan, you want to do your due diligence.

Get a mortgage quote from a mortgage broker.  Remember, don’t rely on the mortgage quote exclusively.

Ask the mortgage broker how much they are charging in TOTAL lender fees for the mortgage rate.

When pricing a mortgage, you price on mortgage rate AND total lender fees.

Don’t get confused about whether there are “no points” on the loan.  Sometimes there amy be no points but $1500 in “lender administration” fees.

It’s the bottom line lender fee figure you want to compare.

In addition to getting a quote from a mortgage broker, get a quote from a mortgage bank as well.

Again, compare the mortgage rate and lender fees.

In conclusion, just because you’re talking to a mortgage broker doesn’t mean your getting ripped off. 

Get the mortgage rate quote and lender fee total and compare!

Related Posts:

• Mortgage Questions – “How Much Money Is My Mortgage Company Making?”
• What Is A Mortgage Loan Refinance?
• 2 Reasons Why You Don’t Have To Drop Your Mortgage Rate by 2% To Justify A Mortgage Refinance
• Mortgage Refinance Questions – “Should You Lock Your Mortgage Rate?”
• Mortgage Services – Top 3 Tips To Avoid Getting Ripped Off By Your Mortgage Services Company