Mortgages From Brokers are Cheaper- Let’s Help You Save

Why You Might Be Paying Too Much Without Realizing It

A question for you: knowing that the typical rate for a realtor is 2-3%, would you ever choose to work with one who wanted to charge 4-6% for the same service and product? I’d assume the answer is no. A big reason why we’d say no is that we can clearly see what we’re being charged. Unfortunately, with mortgages, the transparency isn’t there—most people unknowingly accept the 4-6% cost because they can’t transparently see what’s baked into the rate and got funneled in by advertising and marketing.

The 3% Broker Handicap: What It Means for Your Wallet

As a mortgage broker, I’m classified as a Third-Party Originator (TPO). This means our compensation is capped at 3 percent of the loan amount (However, we do charge less than this, and it’s the same amount for all borrowers). You don’t see this directly because it’s built into the rate we negotiate on your behalf, and it comes back to us as “lender-paid compensation.” But here’s the catch: direct lenders—banks, credit unions, mortgage banks, independent mortgage banks, and correspondent lenders, which make up about 90 to 95 percent of the mortgage market—aren’t under this cap. They’re free to mark up their rates to get 4, 5, even 6 percent in backend compensation and fees, which is hidden within the rate itself. The high side of this range is especially true on VA and FHA mortgages, but still commonly 4-5% on Conventional.

Transparency vs. Hidden Costs: The Truth About Direct Lenders

So, when you’re shopping for a mortgage, you might look at a direct lender’s rate with no upfront points or fees and think you’re getting a good deal. I mean, maybe they aren’t showing any fees so how can it be cheaper, right?

Well, if you compare that rate with a broker’s rate, you’ll often find brokers offer the same rate with a credit back to you or simply a lower rate altogether. This is because we aren’t padding our rates with extra hidden fees—what you see is what you get.

Don’t Take My Word for It—Compare and See the Savings for Yourself

I encourage you to shop these big lenders against us so you can see the difference for yourself. As confusing as it seems, we can use many of the lenders you see—cheaper than they can offer you the same rate. For example, we work with PennyMac, Rocket, and NewRez, to name a few lenders that are both direct and wholesale. We are routinely a few thousand dollars cheaper on fees with the exact same lender on the wholesale side. This trend continues with other direct lenders that aren’t on the wholesale side as well, such as Directors Mortgage, Guild Mortgage, Loan Depot, Summit Funding, and Churchill Mortgage.

But Aren’t Brokers Just an Extra Cost? The Truth Will Surprise You

Even after all this it might still seem like we would be an added layer of cost, but it’s actually the opposite. We don’t come with the retail side’s corporate overhead, advertising expenses, etc. We aren’t stuck with just our companies pricing, we can shop. We also bring in clients who otherwise wouldn’t be directed to these investors. This means they strip out their margin on pricing and are forced to compete with other wholesale investors for our business. What this means for you is a substantially better deal, the best product tailored to your needs, and the best service you can get from me.

Real Examples of Savings That Add Up Fast

To illustrate, we’ve worked with countless clients who saved thousands by choosing brokers over direct lenders. By eliminating hidden fees and leveraging wholesale rates, we ensure your money goes further. Compare our rates and see the difference yourself, it can be a real eye-opener.

Why Good, Fast, and Cheap Isn’t a Myth with Brokers

We are in a unique position in the industry where you can get good, fast, and cheap—because you deserve it. Brokers work to deliver a tailored, transparent experience that gives you the best of all worlds: exceptional service, competitive rates, and unmatched value. Reach out to me and let’s show you what savings you get on your unique scenario. I am in this specific area of the mortgage industry because I believe in giving all clients the same mortgage pricing I want my family to have. Even if you are already in contract, take 5 minutes to see if you can save thousands.

Matt Boytz
Direct: 541-359-7212
Office: 541-972-8616
NMLS 1294957
NMLS 2552455
Matt@BendMortgageBrokers.com
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www.BendMortgageBrokers.com