Can someone explain the difference between using a mortgage broker, mortgage lender, & a bank for refinancing?

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One Response to “Can someone explain the difference between using a mortgage broker, mortgage lender, & a bank for refinancing?”

1. Digger on: 3 November 2009 at 5:00 am

   The small answer is that a broker searches wholesale lenders to find the best loan program and/or rates for you. A banker and a lender are the same thing, except when you’re talking about an actual bank like Bank of America, Wells Fargo, etc. A lender/banker usually has better rates but may have fewer programs. The rates are better, because although they have the same wholesalers, their relationships are different. Lenders have a correspondent relationship, which means they underwrite the loans and sell them on a warehouse line of credit. A typical borrower doesn’t know this and usually doesn’t care, except that the interest rate is usually lower with a lender. But, you may have slightly higher closing costs because the lender will have to pay interest on the line of credit. Usually the lower interest rate more than cancels out the higher costs. If you want an experienced banker/lender, contact Julie at http://primelendingonline.com

   Woof.