In my opinion, mortgage brokers are like insurance agents that go out and collect payments from homeowners that need financing. As the mortgage broker collects these payments, they pass on the payments to the homeowner. This is where the savings begins as the lender or broker makes a commission off of the mortgage broker. This could be in the form of an interest rate, fee or even a discount. Either way, the mortgage broker makes their money from the lender.
The problem with this setup is that the lender or broker usually only offers one type of mortgage. Typically, it’s a high-interest rate and the terms are usually terrible Mortgage Broker dungannon. If the consumer decides to refinance or sell the home, the mortgage broker’s stock is usually worthless. Another disadvantage is that the broker has a fiduciary responsibility to only give information to one specific person: the lender. This keeps the broker hidden from the homeowner and the entire lending process from being exposed, which can cause the mortgage broker to do anything they want to the homeowners.
However, there are some mortgage brokers who will offer mortgages to people who are looking for better rates. For instance, the New Hampshire mortgage broker offers mortgages through their loan programs. These programs have great loan terms and are available to people who may otherwise not qualify for prime mortgage rates. When looking for mortgage broker services, be sure to do your research on each one you consider. This will allow you to make an informed decision on which company you want to work with.