Mortgage Broker vs Mortgage Banker

Most people looking for a Mortgage are faced with the Dilemma – Should I use a Mortgage Broker or should I go to a Mortgage Banker?

The answer to the above question is: Both the Mortgage Banker and Mortgage Broker are good, depending on the person you choose.  Both can do wonderful things for you. 

The bottom line should be the Rates, the Closing Costs and above all the Service you get.  Does the Mortgage Banker or Mortgage Broker respond to your questions on a timely manner?

A Mortgage Broker has access to wholesale Mortgage Rates from a large number of Banks and Lenders.  Usually Mortgage Brokers rates slightly lower than the rates one would get at a bank branch. Also as Mortgage Brokers are working with different Lenders they have access to a lot of programs a typical bank would not entertain.

Based on my experience with the Banks, I have noticed that the Rates for Jumbo Mortgages with 20% down are better with the Bank than with Brokers. However the Mortgage Banker has to strictly follow the guidelines and may not be very flexible like the Mortgage Broker.

Jacob Varghese is based in San Jose.  He is Certified Mortgage Coach.  


Mortgage Broker