We can offer the lowest rates available from the many lenders we are affiliated with.  How can we say that?  It's easy.  To have the lowest rates, you MUST have the lowest costs.  The rate charged to the client is based on the commission paid to the broker.  The higher the rate, the higher the commission. We do not have a large staff or office building with a huge overhead cost.  Most brokers and banks need to get 3 and 4 points within the transaction (that is 3 or 4 percent of the selling price) for all parties to make enough money for the transaction to be worth the effort.  We don't need that much money to cover our costs.  It's simple.  You can't lose.  Just get a quote and compare.  But make sure you understand the TOTAL cost of your mortgage in order to compare properly.  That is both the rate AND closing costs.  

If a competitor offers a lower rate than our comparable program, their closing costs HAVE to be much higher because they are quoting to "buy down" the rate.  They are putting points into your closing costs because they are getting little or nothing from the lender due to the nice low rate they have quoted you.  But in most cases they charge points in order to add the profit to the commission already in your higher rate!  Some brokers don't tell you this until you get the federally mandated good faith estimate of your mortgage charges.  But they don't give you this until AFTER you've given them a check for their up-front charges.  So you become stuck.  Don't ever write out a check until you understand ALL the charges and fees.  Ask for a good faith estimate up front!  Make SURE they point out the "yield spread premium" and any "origination fee".  The yield spread premium, or YSP, is what the lender pays the broker as a commission based on the rate charges the consumer.  The origination fee is the up-front points they are charging the consumer.  A very typical transaction can have 2 points as an origination fee and 2 points within the rate (YSP).  On a $200,000 loan, that is $8,000. in broker profit!  We typically try and get 1 point in the transaction, whether it is in the rate or paid by the consumer.  Couldn't you find another use of the $6,000. in extra cost for your mortgage loan?

Call if you have any questions at all.  Toll-free 1-800-732-8810