This is a YouTube video titled "Brokers, Lenders, Banks - What’s the Difference?" containing a monologue explaining the differences between mortgage brokers, banks, and lenders, focusing on commission structures and cost benefits for consumers. The speaker discusses why mortgage brokers can offer better rates and lower overall costs compared to big banks and lenders. The content was created on April 1, 2023.
People may understand that they can get their home loan from a mortgage broker, a bank or a lender, but it's always kind of difficult to understand what's the difference between all of those. I know you probably hear me talk all the time about we're a huge mortgage broker, 200 plus different banks and lenders. And that does mean we can shop and find your customized option and find your best rate because we shop them all against one another. But it goes deeper than that. So I think everybody understands that realtors generally get 3% commission on each side of the deal. That's kind of public knowledge. But nobody knows how much the bank or the lender makes. And that's the key thing here. So banks or lenders aren't as regulated on how much they can make. So they generally make 5 or 6% commission on that deal off of the loan amount. And that's substantially different because they're paying for big corporate offices and advertising on the super bowl and a bunch of layers of management and all these things that don't really matter to the consumer. A mortgage broker like us, I'm full disclosure. We generally make two to two and a half percent profit on the deal. That's about half of what you're paying the big guys, big banks and lenders out there, the national names that you hear. And that is why it's a direct correlation of why we're about a half percent lower on the rate or on average, we charge about $10,000 less over the life of the loan compared to your typical bank and lender. That's why mortgage brokers are the way of the future.
