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swim_team_rox · Joined: 10 Mar 2004 Posts: 4

Some of my reasoning. A Banker really only has their product to sell, but their bank is more likely to charge less up front because they will make (a ton of) money over the lifetime of the loan.A Mortgage Broker on the other hand has more options but they make their money off the up front fees (closing costs, etc), so which way is better if I simply want to get a lower interest rate (I won't tell you what I have because you will laugh) that I refinanced into right before a job loss a year ago.P.S. I am currently employed.

my_son_wants_to_know · Joined: 14 Dec 2003 Posts: 5

First.. I love the question "who will screw you over the least". My advice is talk to both. Actually if you have a favorite bank that you use, talk to them and then talk to 3 mortgage brokers. When brokers know that you are really shopping around, they will tend to give you the best possible deal. Otherwise, banks are going to charge closing costs too. Yes, they make their money carrying loans, but a lot of times the loans are sold off to other banks anyway. Get a bunch of quotes, and make sure you tell them that you're shopping around. Especially in this market, that will really push them to fight for your business.

angela1586 · Joined: 22 Oct 2006 Posts: 5

Talk to both and find out which one better meets your needs. I personally chose a trusted mortgage broker I’ve known for years because he could shop loan programs to find the best one for me.

Yeppers · Joined: 05 Jul 2005 Posts: 6

Shop around and find a reputable broker. You are correct in that the broker is able to offer many different products. Among many considerations, your rate will depend on your credit rating. Another thing to consider is to look at a Credit Union. The fees there can be significantly less. Good Luck!

3ifbyair · Joined: 10 Mar 2005 Posts: 5

broker

raichasays · Joined: 22 Nov 2006 Posts: 5

Talk to several brokers/ bankers and compare actual rates and origination fees. Usually it is better to pay origination and get a lower rate as the monthly savings on a lower rate will pay for themselves as long as you are in the loan long enough. Your statement of bankers only have their product where brokers can price with multiple banks is also a good assessment. However, LO's at banks sometimes get paid off YSP and origination just like a broker does so that is not always the case either.I would be most concerned with the current value of your home and the LTV of this new loan you are wanting to get. Home values have gone down dramitically across the country so what your home was worth last year may in no way reflect what it is worth now. And as you added you lost a job but are now employed- hopefully you are employed in the same line of work as before as that will impact your qualifying for the loan.Bottom line is talk to brokers and bankers and get the best rate/ origination combination you can. Typically brokers can get lower rates than the bank itself will offer you as we get wholesale rates whereas the LO at the bank is on the retail sheet.

alexrose · Joined: 05 Jun 2005 Posts: 6

go with a broker, especially in these times!

Legend0113 · Joined: 28 Mar 2005 Posts: 5

Niether one will screw you if you go to a licensed one regulated by the respective states they do business in. It's getting old people bashing brokers. Brokers are not the problem, they did not come up with subprime lending, the lenders did. The lenders advertised their "creative financing" to the public and the public HAD to have it. The brokers either had to give the people what they were asking for or they would just go next door and get it. My advice is always see a broker, you have many options that way. But if you see a broker, you need to LISTEN to them. When they tell you that you are better off with a fully amortized 30 year fixed, don't tell them that your cousin, uncle, nephew, neighbor and everyone else got a payment of half that and you want one too. If you do that, don't cry later when it adjusts and you cannot afford it, and if it does, don't blame the broker.

AmberK · Joined: 05 Apr 2005 Posts: 4

brokers may be slightly more expensive when it comes to closing costs, but in most cases, the number of programs they can offer and flexibility they can provide will outweigh the few hundred extra dollars you pay in closing costs. also, the rate that a broker can offer (because he/she has the ability to shop around) can/will be much lower than that of a bank. lastly, make sure you are working with a reputable broker. ask around your social circle and see who has had good or bad experiences in your area. hope this helps...

mightbeacynic · Joined: 25 Nov 2006 Posts: 4

Lets put it this way, go with someone you know and trust. If your not happy with the person you have worked with in the past then talk to people you know and find a reputable lender that is there for your needs and wants whats best for you. On the other subject, the subprime market is not the fault of the brokers or the lenders. The lenders did not design these products. This was done by investors. The programs are there for any and all lenders to use but the ultimate decision on each loan is up to the investors.

Ipsydoodle9310 · Joined: 26 Jul 2006 Posts: 5

A broker shouldn't charge you anything. They get their commission from whatever bank they end up getting you a deal with. Personally, I would go with a mortgage broker, but if you have been a customer with your current bank for a long time, meet with a banker as well, as your own bank will often give you a better rate if you have been a good customer.

cowboysfan · Joined: 30 Nov 2005 Posts: 3

Both, it's up to the person whom you are working with. John and Kim both with ABC Mortgage can quote you two different rate and closing cost. Be up front with whom you work with, they/we what your business and they/we will do what it take to earn your business.

LeighannD · Joined: 17 May 2006 Posts: 4

You are right in saying that banks have their own products to sell and brokers have more lender product options for you.To clarify one point, a Mortgage Broker is paid by the bank in up front and trail commission, you are right.To clarify the 2nd point, a Mortgage Broker is not paid from the closing costs. On this point, you are incorrect.Consider this... Why are Mortgage Brokers in existence?The answer is, it would cost the banks more in staffing expenses if Mortgage Brokers weren't around and thus with the creation of the Mortgage Broker the banks reap the rewards in two new ways...1. They don't have to employ Mortgage Brokers equalling lower staffing costs, divisional costs etc...2. The banks benefit by the Mortgage Broker spending tonnes on advertising the banks products! Holding an office lease, Website creation and running costs, Phone costs, Google costs, Travel & time costs to meet new clients etc...It costs the bank far less to use Mortgage Brokers than it would cost them if Mortgage Brokers didn't exist. Mortgage Brokers are paid by the lender yes, a commission which is not part of the cost of your loan.I hope this helps you...Also, some brokers even go as far as reimbursing your loan application fees and property valuation fees... The doubt the banks will do that for you... Shop around is my advice and select a Broker who work for you not just introduce you to the bank so they can get paid!Start here: www.nchloans.com.auBest of luck!

antonedbone · Joined: 22 Jan 2006 Posts: 4

You are almost always going to get better terms with a bank or direct lender as opposed to a broker. Why? Well, think about who brokers send their deals to; banks and direct lenders. If you look at it from a standpoint of economics, do you think it is possible for the broker to give you the same product and you pay the same price? Brokers very routinely make their money from charging fees (i.e. broker fees, but often disguised as "discount points" or "origination fees") or other junk fees.That is not to say that all brokers are bad or that you can't get a great deal through an ETHICAL broker, but just to say historically brokers have always charged more.I have worked as both and I have seen good and bad.