My mortgage rate went down 0.75% after I switched from my bank to a broker

I was with my big bank for my first mortgage and got a 6.5% rate last year. I just refinanced through a local broker my friend told me about, and they got me 5.75%. The bank guy just gave me their standard offer and said take it or leave it. The broker shopped around with five different lenders over two weeks and found a credit union with a better deal. He also explained the closing costs in a way my bank never did. I feel like the bank just saw me as a number, but the broker worked to earn his fee. Has anyone else saved more than half a point by making the switch?

2 comments

2 Comments

tessa_hill865d ago

Did you pay a fee to the broker?

oscarmurphy5d ago

Wait, is that still a thing people do? I read somewhere that a lot of brokers have moved to no-fee models because they make money on the back end somehow. I mean, I could be totally wrong, but it seems like every ad I see now says no commission. Maybe it depends on what kind of broker you're using?