What are my options for a refinance service?

Learn about your options such as online aggregators, mortgage brokers, direct lenders and the banks.

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Online Aggregators

Online aggregators are lead generation websites. Brokers and Direct lenders usually pay top dollar to get access to your information so they could potentially earn you as a customer. 
Pros:
  • Save you a lot of time with getting information on rates and prices
Cons:
  • You pay more to middlemen who broker your information reducing how good your deal can be
  • Your information will be sold over and over again
  • Once you pass your information you may potentially harm your credit. Be careful and make sure you read their privacy policies
Recommendations:
  • Zillow
  • Redfin
  • Lending Tree
  • Bankrate

Mortgage Broker or Loan Originators

Mortgage brokers are typically the middlemen who find you a match to work with and in return, they make what's called an origination fee ranging from (.5%-1.5% in commission). Usually, brokers work inside direct lenders or banks (see below). 
Pros:
  • Saves you a lot of time
  • Brokers can help you shop for lenders, compare rates, and compile your application, structure your loan.
Cons:
  • Costs are higher because of the broker's charge commission fees.
Recommendations:
  • Someone you know personally

Direct lenders (a.k.a wholesalers)

Direct lenders originate loans and sell them to Banks and Servicers for a fee. Since wholesalers concentrate on volume and output they can capture the best rates directly from the secondary market. 
Pros:
  • Cheaper fees
  • Cheaper rates
  • Faster process
Cons:
  • Service level varies based on size, bigger has less time for you but better prices
Recommendations:
  • United Wholesale Mortgage
  • Homiro
  • Better

Banks & Credit Unions

Retail banks a.k.a. depository banks have a wide range of products they sell. Checking, savings, retirement accounts, they also offer credit cards. 
Pros:
  • Feels easier because they already have a relationship with you
  • Depending on your wealth they might bend over backward for you
Cons:
  • Typically have higher rates and costs due to higher overhead and office space
  • Treat you more like just a number, little one on one time or hand holding
Recommendations
  • Wells Fargo
  • Flagstar Bank
  • Chase
  • Bank of America