Category: Lender Credit

WHAT ARE THE ADVANTAGES OF WORKING WITH A MORTGAGE BROKER?

One advantage of working with a mortgage broker instead of a banker is the lender credit. The lender credit is a credit towards closing costs. This credit represents the excess premium from the lender after paying the broker’s commission. Brokers get paid a fixed percentage of the loan amount from the lender for each transaction. If the bond price for the interest rate is in excess of the fixed compensation, the balance goes to you, the consumer, to offset your costs. You can receive a competitive rate, and money towards your costs; just another reason why you should consider a...

Read More