Who quotes mortgage rates?
Banks and mortgage brokers are the places most of us go for mortgage quotes. The mortgage rates each offers are considered retail mortgage rates because the rates include a markup, but banks and brokers operate differently. A bank uses its own money as a funding source for mortgage loans and profits from the mortgage markup when it sells the mortgage loan to an investor. Mortgage brokers, on the other hand, resell mortgages offered by the wholesales lenders within their network. Usually when a broker closes a loan with a mortgage rate that’s higher than the prevailing market rate, the wholesale lender pays the broker a bonus.
