Quote:
Originally Posted by TiltonBB
Your best rates will be with a mortgage broker. Most brokers deal with 30 to 60 different lenders and they will shop rates for you when you are ready to lock your rate. Banks have to support offices, branches, boards of directors etc. and have to get higher rates to support all that overhead. If you check, you will find the bank rates are usually about 1/4% higher than using a mortgage broker.
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Oddly enough Laconia Savings Bank currently has the lowest rate mortgage I could find. (bankrate.com) They have a servicing agreement with Fannie Mae (or is it Freddie Mac?), which eliminates their risk, but allows them to service the loan. (payments made to LSB, person at LSB to talk to)
I think most mortgages get sold to other loan organizations. My current mortgage was sold three times over the past 10 years and ended up at CitiMortgage. (evil empire) I know selling loans has probably slowed quite a bit since that last financial disaster, but Wall Street always seems to find a way to make money by manipulating it.