What are the advantages/disadvantages of refinancing a mortgage with a direct lender versus a broker?

Question by MC: What are the advantages/disadvantages of refinancing a mortgage with a direct lender versus a broker?

Best answer:

Answer by Christine
I personally choose not to use brokers, but I have worked in the real estate industry for 20+ years. I go online and do a bunch of research as to who has the best rates and go from there.

Brokers (most) only shop your loan to their preferred lenders, those that will pay THEM the best amount, rather than where YOU will get the best deal. Not all brokers, but most.

You can do both, shop around through a broker, or more than one and do research on your own. And let them know you’re working with others, so they’ll know if THEY don’t get you the best rate someone else will.

You have to be really pro-active with direct lenders though. Let them know what you will and won’t pay and at least give them the impression you’re not one of the sheep who blindly follow what they say you should pay.

There’s pros and cons with both. If you’re up for it and have the time, go the solo route. If you’re not, try to get a broker or 2 to work for you.

Good luck!

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