Lender
Rate
APR
Pts.
Lowermortg
6.87%
6.94%
0.698
B of A
7.12%
7.23%
0.697
Wells Fargo
7.12%
7.25%
NA
Chase
7.12%
7.25%
1.000
Quicken
7.25%
7.57%
2.000
805-402-6357
Bank vs Broker?
Frequently Asked Questions
What does a mortgage broker do?
A mortgage broker works on the borrower’s behalf to find the lowest rates and best loan program from various lenders. He/she gathers documents, runs credit, submits the loan scenario through an automated underwriting system, locks in an interest rate, and processes the loan until it funds
How does a mortgage broker get paid?
Mortgage brokers can get paid either directly from the lender or directly from the borrower, but not both. When paid directly from the lender, the broker has negotiated a commission between 1 -3% of the loan amount. This commission is included in the interest rate. The higher the negotiated commission, the higher the rate is for the borrower. Our commission is 1.375 and we have a maximum compensation of $7,000 per loan to make us among the most competitive loan originators.
How can a mortgage broker offer lower rates than banks?
While a mortgage broker gets paid a commission on each loan, banks pay a loan originator commission, advertising costs, staffing expenses, brick and mortar buildings, and most of all share holder’s profits. A bank’s per loan profit is substantially higher than 2.5% per loan. These higher costs result in higher mortgage rates to the borrower.
Can a mortgage broker provide a preapproval letter to purchase a home?
Yes! A mortgage broker can gather a borrower’s information, assess their qualifications, and run their application through various underwriting systems to generate a preapproval letter.