Did you use a Bank or a Mortgage Broker for your Mortgage?

We are trying to understand the differences. I understand that you might pay more to the broker verse the bank, but you still pay points to the bank right? When they say "0" points, it's not really "0" is it? Any advise would be great! Thanks!

We have been looking all over Nassau & Suffolk still to find a house. Very stressful. Still haven't found "the one" yet.

Re: Did you use a Bank or a Mortgage Broker for your Mortgage?

I used a broker because she is a friend of my fathers.

Re: Did you use a Bank or a Mortgage Broker for your Mortgage?

We are using a broker, he is a friend of DH's.
What a "point" really is is a way to "buy down" the interest rate. One point is equal to 1% of the selling price of the house.
What some mortgage brokers will do is get rates at "wholesale" value from the bank. But they will give you a higher interest rate and then charge you "points" to get the interest rate back down. Does that make any sense? I think I explained it right.
Banks might also charge points for lower interest rates, but you don't always have to use them. IF you are going to buy points, you have to pay them at closing, but you will have a lower interest rate. If you don't pay points you will have a higher interest rate that you pay over the life of the loan.

The biggest difference between a mortgage broker and a bank is the broker will shop rates for you. If you use a bank directly, you have to do all the shopping around. A broker can also get lower rates many times.
A broker will usually charge a fee to use his/her services (usually not that much). There are benefits for both ways, you just have to decide which is best for you.
If you would like the name of the broker we are using, I can give you his name, FM me.

Message edited 3/26/2007 3:51:15 PM.

Re: Did you use a Bank or a Mortgage Broker for your Mortgage?

I'm working with WAMU now and rates are 6 1/4 and no points.

Re: Did you use a Bank or a Mortgage Broker for your Mortgage?

I used a broker and was very happy, my closing was smooth and we had no problems and found the right mortgage for our needs. He also helped educate us about everything we needed to know, and was well worth the money.

Re: Did you use a Bank or a Mortgage Broker for your Mortgage?

from my understanding, if you have really good credit just go with a bank b/c you will get a good rate. If you have an ok Credit rating then go to a broker b/c they can shop around for you.

Re: Did you use a Bank or a Mortgage Broker for your Mortgage?

shop both out. if you get a higher rate from a bank but pay no points, then go with the broker...cause for me, id rather pay the one time fee than continue to pay a higher rate throughout the life of the loan.

sweettooth is right that you pay points to buy down the rate. but remember that with a broker, you pay them points as their fee as well. they will charge you a percentage of the loan to cover their costs.

you have to go with who you feel comfortable with.

Re: Did you use a Bank or a Mortgage Broker for your Mortgage?

We are using a broker, he's a friend of DHs and got us a great rate and his fees were nominal. He's been really helpful through the whole process. DH also looked at Merrill Lynch (he has a friend who works there) and their rate didn't come close (and their fees were a bit higher in the end).

He's based on LI so FM if you want info!

Re: Did you use a Bank or a Mortgage Broker for your Mortgage?

Thanks everyone! I understand more now. Just one more decision to make!

Re: Did you use a Bank or a Mortgage Broker for your Mortgage?

we used a bank, no points, at 6.125%.

We wanted to save money and really a broker couldn't have helped us more than HSBC did.

Re: Did you use a Bank or a Mortgage Broker for your Mortgage?

Re: Did you use a Bank or a Mortgage Broker for your Mortgage?

Re: Did you use a Bank or a Mortgage Broker for your Mortgage?

i used a broker. he was great until we were at the end, then he messed everything up. but he did get us a lower rate then the bank.

Re: Did you use a Bank or a Mortgage Broker for your Mortgage?

We used a bank. We met with 2 brokers and felt they were shady. (I am not generalizing all brokers, that was just our experience - so no flames please).

Re: Did you use a Bank or a Mortgage Broker for your Mortgage?

Bank. I shopped one against the other and got the rate I wanted. No points. Also, at the time, two brokers couldn't match the rate and had higher closing fees.

Re: Did you use a Bank or a Mortgage Broker for your Mortgage?

We went with Chase. 5.875% and no points. If you can go with a bank, I would do that instead. You wind up saving money on the fees.

Re: Did you use a Bank or a Mortgage Broker for your Mortgage?

look at other fees besides the points. application fees? "Lender" fees?

I went with Bank of America - 5.875% no points.

Re: Did you use a Bank or a Mortgage Broker for your Mortgage?

My DH works for a Mortgage company so we used them...we only had to pay a small lender fee, nothing else

Re: Did you use a Bank or a Mortgage Broker for your Mortgage?

Thanks everyone! We are going to do some research of our own first and look into all the Banks. Some of you got really great loans from banks. Thanks!

Re: Did you use a Bank or a Mortgage Broker for your Mortgage?

Thank you this helps. We are also thinking of going directly to the bank. What we are doing is getting a good faith estimate, comparing and decide on what's best for us.

Re: Did you use a Bank or a Mortgage Broker for your Mortgage?

I used HSBC, no points, great interest rate for 30 years and very happy with the service!