Last week a borrower told us that he preferred to use his bank for his mortgage financing b/c he thought he could get “lower rates by going straight to the source.” Nothing could be further from reality.
Banks sell their mortgages on the secondary market, just like everyone else. Their rates are usually higher b/c they have so much more overhead to cover.
We think this is most telling: JVM has obtained for financing for numerous employees of major banks and credit unions b/c our rates were actually lower than their internal “employee-rate.”
Brokers do not simply re-sell retail rates with a mark-up to cover our margin; brokers access the wholesale channel directly via “wholesale lenders” that offer far lower rates than the large banks offer. We pass these savings on to borrowers.
Finally, b/c brokers can access so many lending sources, we have far more flexibility with respect to loan programs, speed, service, etc. We are more competitive than ever.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646