morgage broker vs bank loan please help

amother

Tue, Feb 14 2012, 7:31 am

can someone please explain me the difference btw the 2.
from what I understand : morgage broker gets you a lower interest rate but higher closing cost because they take a % of it, and its easier to get a loan through a broker. The bank has higher interest rate but lower cost for closing and is harder to get a loan from.

Now my problem is my parents insist we dont deal with a broker bec ":they're all crooks" and without us realizing they will make us sign a bunch of paper that we wont understand and after a few yrs our morgage will double bec that how they get paid" (im quoting me parents)

I tried explaining my parents that we're signing a FIXED RATE 30 YRS so can the broker really change our interest rate ???
Obv my parents have a lot more experience than us (its our first time dealing with that) so I know my parents want the best for us but everybody else I talk to tell us to go through a broker

Please help me figure it out are brokers really bad in the end of the deal??

thank you for your help,
from a very stressed/worried imamother

Grandmama

Tue, Feb 14 2012, 9:22 am

Perhaps your parents got burnt through a dishonest broker in the past, like in any line of work there are always crooks. Today it is almost impossible to get a mortgage on your own, although you can certainly try.
A good mortgage broker (and you can get satisfied references) is worth every penny you pay him, because otherwise with today's market the chances of getting a mortgage on your own are slim. Unless you are putting down a huge amount (50%) and have a bank that is willing to hand you the mortgage.
Hatzlacha.

chocolate moose

Tue, Feb 14 2012, 8:25 pm

My parents also used that loshon. It's old fashioned thinking.

A broker can get you the best deal, but yes, you have to pay for his services.

You will be amazed at how many extra expenses there are when buying and refinancing.