Many homeowners are afraid to talk to a mortgage broker because of their refinancing fees. Most of the time their mortgage refinancing fees are not any different that what a banks refinancing fees are. The only difference is that banks do not have negotiable mortgage refinancing fees, where as a mortgage broker is able to negotiate some of their fees.
Most people do not realize that a large portion of mortgage refinancing fees are non negotiable and that they are set by the state and title companies. So for the most part, these mortgage refinancing fees will be the same wherever a homeowner goes to get a quote. Every now and then, a mortgage company will take these fees off of the good faith estimate so that it seems like they are charging less, but when it comes to close the loan and sign, they will change their estimate. They do this in hopes that the homeowner will not notice, or by that time they will not want to shop around and spend anymore time on the refinancing process.
This is why many people feel more secure with banks handling their mortgage refinancing needs. However, this is not always the best refinancing option. Mortgage brokers have to constantly be educated and keep their licenses current, on the other hand many bank representatives do not have very much training at all. Another benefit to using a mortgage broker is that they are exposed to many different lenders in the market. This means that they are able to gain more experience and knowledge of the market and can usually provide more assistance and options. This is why going with mortgage brokers is not always a bad thing, even if their closing prices are a little higher. You just want to make sure that your mortgage broker works with a large company and has good connections. Regardless if a homeowner chooses to refinance with a local bank or a mortgage broker, they should make sure that the company they work with has a good reputation and does business ethically.
Most homeowners are looking for a company that offers the best rate with the lowest mortgage refinancing fees. With that being said, mortgage brokers are able to go into the mortgage market and ensure that a homeowner will get the best deal. They are exposed to many different lenders and have the option to choose from many different mortgage products. Banks tend to to offer only the products that they have at that given time. This means that the consumer can only get the best deal that the bank is currently offering and not the best deal that the market has to offer. So in many cases it pays to explore all of the options available when looking to refinance a mortgage.