Your Mortgage Lender is Your Friend

mortgage lender

A mortgage lender is a company who advances funds to individuals for the purpose of purchasing real estate. Mortgage lenders can be banks, credit unions, a mortgage company, a mortgage broker or an organization that meets the strict guidelines to offer home mortgage loans. Competition between mortgage lenders is fierce and interest rate and fees are different from lender to lender. A smart homebuyer researches mortgage lenders to secure the lowest fees and lowest rate for their real estate transaction.

The Difference between Mortgage Lenders and Mortgage brokers

broker

Mortgage brokers connect mortgage seekers with lenders and lending institutions. A Mortgage broker is never a lender. Brokers receive commissions by sending lenders referrals. If these referrals succeed in becoming a successful transaction, they are paid a percentage. It is wise for the mortgage seeker to contact several brokers to determine if they have a lender that meets your requirements for a loan. Loan brokers work with various lenders and should be able to find you the loan and interest rate you are demanding. Competition is stiff when it comes to mortgages. With the difference in costs, fixed rate and adjustable rate loans and associated fees, mortgage brokers can take your personal preference and find you the right lender.

More About Mortgage Lenders and Brokers

broker

Some financial institutions operate as lenders and brokers. Be aware that a broker is paid in terms of "points". A point is equivalent to 1 percent of the loan amount, and this is money that you pay out of pocket to obtain the loan. One percent may not seem like much, however, if your loan is $200,000, your point just cost you $2000. I am sure there are many other ways to spend the $2000 unless you are unable to get the same rates without the use of the broker. Remember, everything is negotiable and that pertains to rates, fees and points.

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News & Events

  • Thirty-year fixed mortgage rate rises to 3.83 percent - 2017-09-21
    Long-term mortgage rates rose this week, lifting the 30-year fixed mortgage from the lowest levels of 2017. Mortgage buyer Freddie Mac said Thursday the 30-year fixed mortgage rate was 3.83 percent,...
  • Mortgage rates go higher - 2017-09-21
    From Freddie Mac’s weekly survey: The 30-year fixed rate worsened, landing at 3.83, five percentage points higher than last week’s 3.78 percent. Ditto for the 15-year fixed, which landed at 3.13...
  • Mortgage rates up for Friday - 2017-09-22
    Several key mortgage rates moved higher today. The average rates on 30-year fixed and 15-year fixed mortgages both cruised higher. On the variable-mortgage side, the average rate on 5/1...
  • Yes, Mortgage Rates Finally Perk Up - 2017-09-21
    The 30-year fixed-rate mortgage (FRM) averaged 3.83 percent for the week ending Sept. 21, up from last week when it averaged 3.78 percent. The 15-year FRM this week averaged 3.13 percent, up from...
  • Mortgage Rates Friday: 30-Year Falls, Fewer Homes Upside Down ... - 2017-09-22
    The 30-year fixed-rate mortgage dropped two basis points, and the 15-year fixed and 5/1 ARM were unchanged, according to Friday's NerdWallet survey.and...