Bank APR's differ from mortgage brokers

With all the confusion between the brokers role and the banks we thought it was important for you to understand just what a broker is, how they can be of great assistance to you and why you should utilize their services. First a broker is often a local business whereby they have presence in the community. The brokers are not employed or obligated to send your loan through any one entity. They can shop your loan, offer a wide variety of programs and options and more frequently than not the broker can offer lower interest rates than a retail banking branch. We believe that in today's financial environment Government has (in an attemt to regulate the industry ) overreached their authority, put banks at an unfair advantage by not disclosing the APR the same way that brokers have to disclose the APR. Second a mortgage broker has to undergo rigorous testing be subject to a criminal background check and maintain an excellent credit profile,yet the broker is not only limited as to what they charge but has to present it in a different form to the public than banks do.Be there no mistake that the broker is responsible to insure the loan quality and performance.Yieldspread generates funds by increasing the rate slightly.Through yieldspread the client is given a variety of options as to what rate a client wishes to choose and how much out of pocket expenses they wish to have.Investors pay yieldspread differently based on credit score,volume,quality, performance,relationships and track records of past loans sold and originated by the broker. The banks have something known as "Service release premium". This is their profit from servicing the loan. Essentially the bank may borrow money from the fed at .5 or 1% and the lend it to you for let's say 5.275%. Their profit margin could be anywhere from 500% to 2500%, yet a broker is not permitted to make more than 5% (even if the yield spread paid the majority of the costs.) A broker is not allowed to make more than 5%, the banks make thousands of percents. Brokers must calculate yieldspread into the APR and banks do not. DO NOT BE MISLEAD BY COMPARING A BROKERS APR TO A BANKS. THEY ARE NOT ON THE SAME PLAYING FIELD!! As a consumer you should be concerned with how much you are paying in your payment, how much cash you will have to part with, the term and whether or not it is a fixed rate. In addition there are a variety of additional benefits that the broker can offer that far exceed Banks. Brokers have total transparency!