It’s a common misconception and something I frequently hear from prospective customers.
“I’ll get a better deal from my current mortgage company since they already own my loan.”
What the average consumer fails to understand is that the company that sends them their statement every month probably just services the loan. Meaning they just send you your bill and make sure the taxes and insurance are paid for a servicing fee. In most cases the underlying mortgage was sold in the secondary market to a company like Fannie Mae or Freddie Mac.
In fact, if you go with your current big bank mortgage company you will probably get a far worse deal. The large banks have tremendous overhead and pass that cost on through higher rates for the consumer. A company like ours is small enough to price our loans well below what you will get from any of the large banks.
Below is a link to a Consumer Reports article that discusses this very topic.
Feel free to call or email us with any questions, or for advice on how to best meet your personal financial goals. As always, no high pressure sales or dishonest tactics. Just straight forward advice from seasoned professionals. We are currently licensed to lend in the state of New Jersey and Pennsylvania