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Upfront Mortgage Broker
Mortgage abuses persist because most lenders do not disclose
mortgage costs, making it difficult for consumers to negotiate a
fair price. The solution: transparency.
Jack Guttentag, a retired finance professor, has identified a group
of lenders and brokers who will disclose a mortgage's actual cost
in writing and in advance. The lenders are called
Upfront Mortgage Lenders, and the brokers are
called Upfront Mortgage Brokers.
You can find a list of Upfront Mortgage Lenders and Upfront Mortgage
Brokers on Guttentag's helpful website:
www.mtgprofessor.com.
Here is how to work with an Upfront Mortgage Broker. You contact
the broker
directly and negotiate a fee. The fee averages about 2% of the loan
amount, although it may be lower for a large loan and higher for a
small loan. It may even be affected by your creditworthiness. If
you have excellent credit, your fee may be lower.
In most cases, the fee will be justified by the savings in total
mortgage cost.