Fortunately, though, McGahey didn't stop there, and popped over to E-Loan , where he was able to compare loans from all the major banks. There are a lot of good reasons to follow McGahey's example. It's the same research a traditional broker is supposed to do for you. But if you do the looking yourself, you can make the search as exhaustive as you like, and maybe find a better deal. E-lenders charge less than traditional brokers.
All brokers mark up loans by charging origination fees, or points.
But e-mortgage brokers typically charge about half the points that a regular mortgage broker wouldcharge. E-lenders also charge lower fees for other work involved, such as preparing documents and completing wire transfers. Traditional brokers just can't compete. I know what I need to make on each deal to stay in business. Most sites include a monthly payment calculator, functions to determine whether it's more advantageous to own or rent, and a questionnaire to help you figure out what type of loan is most appropriate for your situation.