Using mortgage brokers effectively
Frequently Asked Questions
Straight answers to the questions we hear most.
In the vast majority of cases, Mortgage Brokers are free for the borrower. They are typically paid a commission or “trail” by the lender once your loan is settled and funded. This commission structure is regulated to ensure it does not influence the broker’s recommendation against your best interests. You should always confirm with your broker that there are no fees for their service.
Rate locks typically last for 30, 45, or 60 days, which aligns with the average mortgage processing timeline. You can also find locks for shorter (e.g., 15 days) or longer (e.g., 90, 120 days) periods. The length you need depends on the complexity of your loan and your closing date.
If there is a significant change in your application—such as a change in the loan amount, a different property, or you decide on a different loan product—the lender may need to issue a revised Loan Estimate. This new form will reflect the updated terms and costs.
A cash-out refinance replaces your primary mortgage with a new, larger one. A home equity loan (or a Home Equity Line of Credit, HELOC) is a second, separate loan that you take out in addition to your existing first mortgage. A cash-out refi often has a lower interest rate, while a HELOC offers more flexible access to funds.
Your primary point of contact is your mortgage servicer, whose contact information is on your monthly mortgage statement. If you are unable to resolve an issue with them (for example, a dispute over a shortage calculation), you can file a complaint with the Consumer Financial Protection Bureau (CFPB) or your state’s banking or financial regulator.
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