We work with several banks. mortgage wholesalers and mortgage bankers that allow us to shop rates for our clients. Being that we do all of the processing for these sources we receive Wholesale Rates which are always discounted from Retail Rates (rates offered from bank branches, direct mortgage lenders, servicers etc.).
There can be a large variance (both positive and negative) between lenders on a daily basis on the Wholesale Rate as they compete for market share. Thus, being that we have several sources to choose from for our client we always have aggressive rate options.
Once we close a loan for our client the loan is then serviced by the bank, lender or servicing company. At times they have a Retail division that may solicit the client or make it seem that they can streamline the mortgage process as they currently have the loan in their servicing department. But, with any new loan the process has to start over from the beginning. It is also important to note that they only offer a Retail Rate and not the Wholesale Rate at that point.
Generally, the difference between a Wholesale conforming 30-year fixed-rate is .25% lower than a Retail rate and up to .50% lower on an FHA or VA loan. Over the life of the loan that equates to a large amount of savings for our clients.
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