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ali120206
2 Boys
Member since 7/06 17795 total posts
Name:
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Mortgage Quote - What would you do?? - UPDATED
We've received two mortgage quotes from friends, one is a quote directly from Merrill Lynch and one is a quote from a mortgage broker.
The Merrill Lynch interest rate is higher but, we don't have to pay a broker fee. What would you do?
Higher rate or fee???
UPDATE:
Ok, so I'm an idiot... I was looking at the fee the lender pays the broker and thought that was the fee we needed to pay him...
Thanks to all of the girls who responded, by saying "a couple hundred" I felt I needed to do a search online and I found out that I wasn't responsible for that amount!
We're going with the broker, the couple hundred is definitely worth the lower interest rate!
Message edited 1/30/2007 3:56:00 PM.
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Posted 1/30/07 2:19 PM  |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Re: Mortgage Quote - What would you do??
I would see which one comes out cheaper in the long run...the no fee and higher interest rate or the fee with a lower interest rate then I would take it from there. My guess is the lower interest rate with the fee is going to be your best bet....depending on what the fee is. Good Luck.
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| Posted 1/30/07 2:41 PM |
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bikramaddict
mommy-to-be
Member since 8/06 4376 total posts
Name:
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Re: Mortgage Quote - What would you do??
I'd go with the broker with the lower fee, but make sure you get a good faith estimate.
The fee, I'm guessing, is a few hundred whereas a higher interest rate can be $20+ more per month which will add up quickly.
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| Posted 1/30/07 3:20 PM |
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DRMom
Two in Blue
Member since 5/05 20223 total posts
Name:
Melissa
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Re: Mortgage Quote - What would you do??
Yes obvioudsly if your rate is higher you will be paying for that decision for 30 yrs! While the fee is a one time thing
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| Posted 1/30/07 3:21 PM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: Mortgage Quote - What would you do??
Posted by melijane
Yes obvioudsly if your rate is higher you will be paying for that decision for 30 yrs! While the fee is a one time thing
Yep, sounds like the broker is giving you a better deal. To pay a few hundred dollars now is going to be a lot less than a higher interest rate over 30 years.
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| Posted 1/30/07 3:22 PM |
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ali120206
2 Boys
Member since 7/06 17795 total posts
Name:
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Re: Mortgage Quote - What would you do??
Posted by RandJ0806
I'd go with the broker with the lower fee, but make sure you get a good faith estimate.
The fee, I'm guessing, is a few hundred whereas a higher interest rate can be $20+ more per month which will add up quickly.
We have a good faith estimate for both, they look similar, one requires more in escrow but, other than that, they are the same.
The fee they gave us was higher than a couple hundred. I will have to look into that a bit further (especially since it's a "friend")
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| Posted 1/30/07 3:26 PM |
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ckone
LIF Adult
Member since 8/06 3014 total posts
Name:
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Re: Mortgage Quote - What would you do??
Direct lender. I had a very bad experience with fees from a broker and the product that I received was terrible.
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| Posted 1/30/07 3:54 PM |
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alnem
This is gonna be a good year!
Member since 2/06 9562 total posts
Name:
Emily
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Re: Mortgage Quote - What would you do?? - UPDATED
well i would go with the broker cause you wont feel a one time fee in the long run. however, its definitely gonna be more than a couple hundred dollars. it should be 2-4 points of the loan amount. if you're not comfortable with that, then bring your GFE to merrill lynch and show them you're getting a lower rate from this broker. willing to bet they find a way to match the brokers rate!
Message edited 1/30/2007 4:25:43 PM.
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| Posted 1/30/07 4:25 PM |
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kerrycec03
Mom of 2 beautiful boys!!
Member since 6/06 13519 total posts
Name:
Kerry
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Re: Mortgage Quote - What would you do?? - UPDATED
good for you!
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| Posted 1/30/07 4:26 PM |
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