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I live in the US and I am considering refinancing my mortgage. From what I have read, a large part of the cost of refinancing comes down to broker fees (which tend to be a percentage of the principle (~1-2%) and can be in excess of $10,000), so I am curious about the possibility of refinancing without using a broker.

What are the pros and cons of doing this? Can I really save money by not using a broker?

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  • Have you contacted the current bank that is servicing your mortgage?
    – JTP - Apologise to Monica ♦
    Mar 23, 2020 at 16:01
  • @JTP-ApologisetoMonica I haven't done that yet, no. At this point, I was looking for some general, independent advice.
    – Time4Tea
    Mar 23, 2020 at 16:07
  • Is it normal to do a refinance (or FTM even an original mortgage) through a broker? While I'm no expert, the few I've done have always been directly through the lender.
    – jamesqf
    Mar 23, 2020 at 17:07
  • @jamesqf thanks for your input. It seems that contacting our current lender is probably the first step. I had assumed a broker would be involved, because the 2-3 sites I checked about estimating refinance fees listed 'broker fees' as among the highest. I didn't think people would be paying 1-2% of principle as fees, unless there was some value to it.
    – Time4Tea
    Mar 23, 2020 at 18:13
  • @Time4Tea: I think spending money on a broker may be more of a psychological thing, akin to the way many people with dead-simple tax returns still pay someone to do them.
    – jamesqf
    Mar 24, 2020 at 17:06

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I am an old person, and over the years I’ve had a number of rental properties as well as those that I’ve lived in. With that, came a number of refinances. When I was trying to buy rental properties and had trouble getting a mortgage from a local bank I went through a broker. Yes that came at a cost. for the home I am in now, nearly 25 years, I have refinanced five or six times. And I’ve never used a broker for this house mortgage. The bank was always willing to give me a decent rate and their lowest fees. in the end, a spreadsheet is your best friend. Or a good mortgage calculator. If you are asked to pay $10,000 more upfront but save, say $500 per month, you can see the breakeven is about 20 months. The process has been discussed here on many questions. When I am back to my desktop computer I will see if I can find a few good ones and link to them.

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  • Thanks for your input. I guess we need to look at and compare various options: current lender, other lenders direct, brokers.
    – Time4Tea
    Mar 23, 2020 at 18:17

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