Question:

Shouldn’t I know how much I am charged for mortgage broker points?

Answer:

Mortgage broker points on the loan will not show the same as the lender points on the quote but the borrower won't know how much they are charged in the meantime unless the broker discloses the lender rates on the GFE (good faith estimate). To be clearer about mortgage broker points you are being charged, simply try to shop the best rates and terms. In that case, you won't need to know whether you are dealing with a broker or lender.

Sometimes the mortgage broker fee disclosed on the GFE will be 0 and the borrower is led to believe they are getting free mortgage broker service, which cannot be farther from the truth.

Can I ask how many mortgage broker points they charge me?

Brokers are required under the law to disclose what points they charge for their services while lenders are not. Disclosing mortgage broker points puts brokers at disadvantage hence their reluctance to reveal those.

Confusion also arises when a loan provider is licensed to act as a broker in some cases and as a lender in others. Or, smaller mortgage brokers begin acting as net branches for lenders in which case they are not obligated to disclose their mortgage broker points to consumers. Or, some brokers acquired lender licensure but do not change their names and borrowers are not aware if they are dealing with a lender or broker.

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Common misspellings: mortage and morgage