Morgage Direct Lender - Low Rate Loans

Morgage Direct Lender vs Brokers

A Direct Lender is a company that claims to act as a direct conduit between a Borrower (you) and the funds that will be used to refinance the home (loan). The potential benefit of a Direct Lender when refinancing is that the fees normally charged by a middleman (broker) are eliminated and therefore the opportunity exists to save money.

There are, however, several reasons why you may likely not benefit by using a Direct Lender. The main reason is that Direct Lenders have very limited program options. A fairly diverse Direct Lender may still only have 30 or so lending options whereas a diverse broker may have access to 10,000 or more programs. So for a Direct Lender to save you money they must have not only the best loan program for you but also have the lowest rate on that program, too.

Ask yourself this question: what are the odds that you will select the lender with not only the perfect program for you but also the lender with the lowest rate in the nation for that program? Keep in mind that there are literally thousands of lenders from which to choose...the odds really aren't in your favor. As a general rule you are much better off selecting a reputable broker rather than a Morgage Direct Lender.

Other Important Morgage Terms

Down Payment – Money paid for a house from one's own funds at closing. The down payment will be in the amount of the difference between the purchase price and mortgage amount.

Due-on-Sale Clause - Provision in a mortgage or deed of trust allowing the lender to demand repayment in full if the borrower sells the property that serves as security for the mortgage.

Save on Fees With a Morgage from a Direct Lender