How Working with a Mortgage Broker Can Save You Thousands
In the ever-evolving world of home financing, making the right choice can save you not only time but significant money. At CM Mortgage Services Inc., we’re committed to ensuring our clients get the best possible deals when securing a mortgage. A recent study by Polygon Research has highlighted just how crucial it is to work with a mortgage broker if you’re aiming to save thousands on your home loan.
The Study: What the Numbers Reveal
The August 2024 study, backed by Willow Canyon Advisors and United Wholesale Mortgage (UWM), analyzed 2023 HMDA data and concluded that consumers save an average of $10,662 over the life of a loan by choosing to work with an independent mortgage broker instead of a nonbank retail lender. This substantial saving isn’t just a fluke; it’s evidence that the wholesale mortgage channel consistently delivers better value to consumers.
But the savings don’t stop there. Even upfront costs are significantly lower for those who go through the broker channel. In 2023, a year marked by high-interest rates, homebuyers in the wholesale channel paid an average of 115 basis points upfront for a 6.58% interest rate, compared to 148 basis points upfront for a 6.60% rate in the retail channel. These differences might seem small at first glance, but they add up quickly, especially when considering the total cost over the life of a mortgage.
Aiding Veterans and Minorities: More Than Just Savings
Beyond financial savings, the study also highlighted the crucial role mortgage brokers play in serving specific communities, particularly veterans and minority borrowers. For VA loans, the difference is staggering: veterans working with a mortgage broker saved an average of $13,432 per loan compared to those who went through retail lenders. Additionally, these veterans enjoyed lower interest rates and upfront costs, making their path to homeownership more affordable and accessible.
For minority borrowers, the wholesale channel has proven to be an essential ally. The study revealed that in 2023, a higher percentage of home purchase loans originated in Minority Majority Census Tracts (MMCT) through the wholesale channel than the retail channel. Mortgage brokers demonstrated higher approval rates for loans in these areas, showcasing their commitment to promoting homeownership among underserved communities.
The Broker Advantage: Why Choose CM Mortgage Services Inc.?
At CM Mortgage Services Inc., we understand that purchasing a home is one of the most significant financial decisions you’ll make. Our role is to navigate the complexities of the mortgage market for you, ensuring you have access to the best possible loan products tailored to your needs. The findings from Polygon Research reinforce what we’ve always believed: that independent mortgage brokers, like us, offer unmatched value, especially when compared to retail lenders.
Our personalized approach means we take the time to understand your financial situation and goals, guiding you through every step of the process. Whether you’re a first-time homebuyer, a veteran, or someone looking to refinance, we’re here to ensure you get the best deal possible.
Conclusion: Don’t Leave Money on the Table
The research is clear: working with a mortgage broker not only saves you money but also provides a smoother, more personalized home-buying experience. At CM Mortgage Services Inc., we’re proud to be part of an industry that consistently delivers these benefits to consumers. Ready to see how much you could save? Contact us today to learn more about how we can help you secure the mortgage that’s right for you. Don’t leave thousands of dollars on the table—let CM Mortgage Services Inc. guide you to a smarter, more affordable mortgage solution.
