Ditched my broker after 3 years because I was paying double the points

I mean, I just assumed all cash out refi rates were kinda the same, you know? Last month I was talking to a friend at a BBQ in Austin and he mentioned his rate was way lower. I pulled my paperwork and realized my local broker had been charging me 2.5 points on every refi while national lenders were doing 1 point. Has anyone else gotten stuck with a broker like this?

2 comments

2 Comments

piperr582d ago

My buddy in Denver paid 3 points on a refi last year and didn't even realize it until his wife found a better deal online. That broker was a family friend too so he felt awkward confronting him about it. Sometimes the "loyalty discount" is just a way to charge you more.

luna5892d ago

Always get a truth in lending disclosure and ask them to explain every line item before signing. A trusted broker should be fine with you reviewing the numbers and asking questions without getting weird about it. If they get defensive or pushy, that's a huge red flag right there.