Question by Jentleman: What is the best way to get a good mortgage rate in California?
I have a friend who is buying a house. He is trying to get the best rate. There are mortgage brokers that are offering a rate that is 0.125% better than the banks. Right now, that is around 6.25% for a 30 year loan at 80% financing. Are mortgage brokers the best deal? Thanks.
Best answer:
Answer by KL
It’s all about the brokers. They can give you as low of a rate as they want…it all depends on how much they want to make on the rate. Banks have a set amount they need to make per loan, then the loan officer adds on to that depending on how much they want to make.
6.25% sounds pretty decent, but when shopping rates, make sure your friends finds out what the closing costs are too. Some companies offer really low rates but then slam you with costs.
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