Should I use direct lender refinance, or go with a broker?


A direct lender refinance mortgage can have its advantages over a refinance loan obtained through a broker.

Both mortgage brokers and lenders may be used as sources for information, and both obtain their rates at the secondary market. However, a broker will be able to shop various lenders for loans while a lender is restricted to their own mortgage products.

A direct lender can provide a refinance mortgage loan in all 50 states.

A mortgage broker usually will be licensed in some states only. Sometimes a mortgage broker will be able to shop really the best loans and refinances compared to a direct lender, but many brokers won't pass the wholesale rates to borrowers and the advantage will be significantly reduced.

A direct lender refinance is best if the consumer is comfortable shopping loans on their own. Because broker's fees will avoided, closing costs will be less and your refinance will be cheaper.

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