Urban, I politely disagree about brokers having a point…
Why not disclose what they are making, front end and back end. I gladly do it. As an agent, you do it. Why should there be secrets that screw the client ??
I say screw the mortgage person that doesn’t want to disclose their total compensation.
What’s wrong with saying my wholesale rate is 4.75% (or whatever) I charge one point to provide it, and I don’t get a penny back from the lender at this rate..
If you want to pay a higher rate, it will lower your cost because the lender will compensate me for overcharging you.
(I call it a reward for screwing the borrower)
Banks have higher retail rates with fees. Most people don’t know how to figure which is a better loan, but no fees, no costs, sounds better to average people, who buy average houses, at average interest rates.
Many bank employees are clueless that wholesale rates exist with better options for many borrowers.
For those that only want to shop by price, they will get what they pay for.
Plenty of businesses exist without being competitive on price. People still choose to spend with them.
