Great question. Whether purchasing a home or refinancing one, it is extremely difficult to shop interest rates posted daily by so many lenders. Many of these rates are “Loss Leaders” and reflect loans that only 25% of the applicants may qualify for. Or they are FHA or FNMA weekly “averages” and they do not take into account the week’s rates movements if upward. One thing is for certain. Rates have hit the highest levels in years and are going to be rising most likely well into 2023 due to poor handling of inflation in the US.

A mortgage broker is an entity who works as a middleman between you and the lender. And offers funds from maybe 20 or 30 chosen Institutional or Mortgage Banks. Not just 1 loan source. A mortgage bank is the entity that directly lends you the money you need to purchase a home.

Generally, mortgage brokers allow much more flexibility in shopping for a loan in 1 place, with multiple sources, especially if you are self-employed. The mortgage broker may work with multiple lenders and have access to different loan products than an Institutional Mortgage Bank might. The mortgage broker can help you find the best rate and terms for your prospective mortgage. A mortgage lender is the entity that directly lends you the money you need to purchase a home.

Whether you decide to work with a mortgage broker or mortgage lender it is good to understand why Loans have different prices and what your family’s needs really are for the next 5-10 years, and there is the rub. Make sure you understand the loan terms and fees that both a mortgage lender and mortgage broker charge to determine the best loan option for you.

To learn more about Dan Cassel and Trinity Mortgage Real Estate Loan services phone Dan Cassel at 866-310-1112 or Click HERE to learn more.