Top Mortgage Broker infor request?

Posted by admin on July 26th, 2007 at 12:35pm

Q. We’re looking at buying a house shortly, and are just starting to get familiar with mortgages. One thing that’s come up is bank mortages vs. mortgage brokers. I see a difference of half a percent or so between the best rates a bank can give us (0.65% off posted rates) and what most mortgage brokers offer. Is there a catch? Is there any advantage to going with a bank? Any other hints?

A. Mortgage brokers go to a whole bunch of lenders, including major banks, so that gives them the leverage to negotiate the lowest rate for you. They get paid a commission by whomever gets your business. Some brokers have their own private investors which allow them to grant mortgages. There is no catch. If you really wanted to go to your own bank for your mortgage, I suggest going with a broker first, so that they can shop around for the best rates. Take those rates to your bank, and they will probably (or should) try to beat it. .

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