A. Independent surveys have shown that mortgage brokers do NOT cost you more than direct lenders. In many cases they even save you money.
Mortgage brokers increase competiton in the market place, resulting in lower rates for everyone.
Since mortgage brokers obtain their funds from a variety of sources, they allow you access to a large number of lenders. When you apply for a loan with a mortgage broker you are effectively applying for loans with all the lenders that mortgage broker is approved with. Mortgage brokers obtain rates at wholesale, mark up these rates by adding points and then quote you a retail rate. Mortgage brokers are NOT employees of the lender, rather they are independent contractors. Mortgage brokers are free to set their own pricing.