Bee | High IQ Buying: How to get the lowest rate possible
January 13, 2023
With record inflation driving prices sky high, a low mortgage rate is everyone’s goal.
Unlike working directly with a lender, buyers get much lower rates using mortgage brokers because they get access to wholesale rates, not retail. At Bee, we shop around for you to find the lowest rate possible among all our lenders. It's common for a mortgage broker rates to be anywhere from .5% - 1.5% lower than what a home buyer can find on their own. The mortgage broker business model is gaining a lot of momentum and popularity with buyers due to the monthly payment savings as home buyers are rate focused.
Mortgage brokers like Bee are paid a percentage of the loan amount, not the rate. They're incentivized to find the lowest rate possible for their customers so they refer friends and family members to them in the future. Although the standard mortgage broker fee can range up to 1 or 2% of the loan amount, most buyers happily pay it due to how much they'll save with the lower rate mortgage. In many scenarios the fee is paid by the lender (not the buyer) as a finders fee for bringing them a customer. This commission type payout is common all throughout our economy, whereas one business does a job for another business and is compensated for it.
A real world example
One of our first-time buyers was offered 7.25% from a credit union but got 5.999% with Bee by paying our small broker fee directly to us. This cost him about $3,500 but his savings was more than $50,000 with our loan, easily justifying the small broker fee.
In certain situations, buying points to get a lower rate is the best way to go. High IQ buyers buy points. Buying points is like pre-paying interest at a discount. Each situation is unique and no matter the circumstance, we work with each customer to figure out a rate and mortgage payment that’s best for them, then let them decide for themselves which way they want to go.
Buy with Bee and refi for free
You might hear of lot’s of offers from other lenders right now offering temporary rate buydowns and specials where the mortgage payment is lower for the first year or so. Don’t be fooled. Lenders don’t give away anything for free. But at Bee we do!
When you buy with Bee in 2023 and refinance for free when rates drop.
And by free we mean you won’t pay us any out-of-pocket commission at closing for brokering your loan.
We understand rates are the top concern of home buyers right now and want to ensure their peace of mind when they buy with us. We’ll track mortgage rates for you and when they drop enough to get a good savings by refinancing, we’ll let you know.
Keep in mind, that doesn’t mean you won’t pay normal closing costs. We can’t do anything about those pesky third-party fees, but the one fee we do control, our broker fee, you won't pay that out-of-pocket at closing.
However, you can easily roll them into your new loan so that you’re not paying any money out of pocket from start to finish–the cost of the appraisal and all other closing costs can be rolled into the new loan. Plus, you’ll be able to close remotely, from the comfort of your home or somewhere else if you like.
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Bee is a leading Florida mortgage broker with over 10 Florida local offices that’s been featured heavily in the local and national news for its instant pre-approvals, low rates, fast closings, and new mobile technology. For more news and resources, click here.