Interest rates being equal, where is the best place to apply for a mortgage? regular bank or mortgage company?

Answer 1

Even though interest rate appear equal on the surface, they often are big differences. These differences have two sources. Points and closing costs. Point are an up front charge some institutions charge for making the loan. Closing costs are supposedly fees charged to the borrower to cover costs of making the loan. Both are often negotiable. Generally speaking but certainly not always bank are lower in both departments.

Another cute trick is that a bank will often if not always request that you open a checking account at their institution in order to receive the loan.

Answer 2

Generally I encourage people to go to their local bank first because closing fees are usually a lot less then through a mortgage broker (whose paycheck is made up as a percentage of those fees).

Answer 3

if the rates are the same look at the closing costs and other flavors ie pmi insurance (scam), how much down, if its a fixed rate (MANDATORY), extra fees tacked on and so on. Then look at who has the lower of the two and once you get in be prepared to have it sold off to someone else (and they have to honor that first agreement) . so between teh two it doesn't matter as long as you compare closing costs.

Answer 4

Banks have more regulation for the protection of the borrower, so the bank!

Answer 5

Which ever source will have the least charges to you for obtaining the loan.