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Originally Posted by Adam in CO
Stacy,
I like what the retailers do business-wise, but it is expensive. Using a retail bank usually means less headache, lower costs and higher rates. Using a wholesale broker usually means more costs and paperwork, but far better rates. That's really the big difference between wholesale and retail in this business.
We usually find a break point of about 30 months. So, depending on how long you're going to keep the property or the loan is what should make up your mind about using a banker or a broker.
In a jumbo scenario, you'll probably save hundreds each month by getting 0.75% better in rate and get a far better long-run deal from a broker than you can from a bank. It would probably be worth using a wholesaler for that kind of savings.
If you want me to peruse any info and give you an objective expert opionion, don't hesitate to ask. I would always prefer that people get good data so they can make informed decisions.
Good luck.
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Stacy i heard this guy was a scammer and does not have any mortgage info but rather makes a fortune by selling your personal info to lendingtree.com and ditech.com...this is just what i heard
One other advantage Adam did not mention that a broker has over a bank is a variety of lending options. Generally speaking, retail banking institutions have their money and can only lend their money. This means they are limited to their product guidelines. Most brokers have access to over 300 banks money (ie, countrywide, wells fargo, bank of america) but on a wholesale level so they can be very competitive in rate and VERY creative in suiting your financing needs/goals. Your best brokers learn how to think outside the box(banks are stuck within the box) and can offer very creative terms. That being said, Adam knows his stuff--give him a call and i think youll be amazed at his abilites as a broker vs. a banker.