The Difference Between Wholesale and Retail Mortgage Rates

Wholesale Vs. Retail Mortgage Rates Explained

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.  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 (as the majority if loans are sold to Fannie Mae, Freddie Mac or insured through VA or HUD).  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.

Click Here For More Information 

Bob McCormick, President

Toll Free 800-328-0144


Lending in Arizona and California 

"Don't Overpay For Your Mortgage"


Popular posts from this blog

In-House Direct A+ Paper Portfolio and Private Loan Options Available!

Utilize Our Wholesale Rates - Don't Pay Retail!

Debt Consolidation Loan Options (Reduce interest rates on overall monthly debt and maximize cash flow)