If you are looking to refinance your home mortgage, you may want to know if you need to work with a refinance broker, or go straight to the lenders. Both options have their upsides and downsides, and in the end, you will need to decide which will prove to be more beneficial to your particular case.
If you deal directly with lenders, you can save on the service fees that mortgage brokers charge, which is usually 1% of the mortgage amount. Other mortgage brokers charge a flat rate for their services. The service fee is the biggest disadvantage of getting a refinance through a broker.
On the other hand, working with a refinance broker offers many benefits. For one you will have better access to the various options from several lenders. Mortgage refinance brokers typically work with a network of lending institutions that offer various financing packages. They can then present these options to you and help you understand the nuances behind each one. Furthermore, a broker can help you go through your own financial situation to help identify the right refinancing package.
If you have the time and resources to shop around for the best deal for yourself, then you can potentially save some costs by not having to pay a broker’s fee. However, if you want to make sure you have as many viable options for your perusal as possible, then working with a reputable home refinance broker may be the way to go.
The Home Loan Arranger 