Switched my mortgage to a broker after my bank quoted 6.8%

I was sure the broker's 5.9% rate had hidden fees, but the final paperwork was clean. Anyone else get a better deal outside their main bank?

3 comments

3 Comments

victorross3mo ago

Seriously? Banks have loyalty programs, but they rarely reward loyalty with good rates.

violafox3mo ago

Totally believe it, my bank tried the same thing last year. They acted like their 7% offer was some huge favor for being a longtime customer. Went to a broker and got 5.5% with no crazy fees at all. It feels like they just hope you won't bother shopping around. What was your bank's excuse when you told them you were leaving?

emma_burns9618d ago

Yeah but the broker rate is just for the first year or two in a lot of cases, then it jumps up above what the bank would have given you long term. My buddy got a 5.7% from a broker last spring and after the teaser period ended it went to 7.2% with some prepayment penalty he didn't notice in the fine print. Banks are more likely to let you renegotiate or break without huge fees down the road because they actually want you to stay. It's not always about the upfront number.