3. We are putting you in the best position possible
I want you to understand this clearly, the objective of any bank/mortgage broker is to make as much money as possible. Don’t ever forget that lesson. Therefore, they will try to put you in a mortgage that makes them the most money without compromising the deal. In order for the deal to be done, they have to make sure you qualify for a purchase or save you money on a refinance (unless you are pulling equity out of your home). For example, lets say that lowest rate starts at a 4.0%. However, the bank doesn’t pay the mortgage broker money for giving you the lowest rate.
Banks are in business to make money, not make dreams come true for homeowners. If the mortgage broker sales you a 4.5% instead, the bank will pay the broker .5% of the loan amount. If the mortgage broker sales you a 5.5%, the bank will pay the brother 1.5% of loan amount. So you see, the bank rewards mortgage brokers for giving you a higher rate because that allows them to make more interest in the long term.
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