Do Discount Mortgage Brokers Charge Less?
The term “discount broker” implies that the broker is providing services at a bargain price. Nothing could be further from the truth. If they were practicing full and candid disclosure, here is what they would say to you: “You are paying me in the interest rate, which is higher than it would be otherwise. I prefer to charge you this way because I fear you will resist paying out of pocket and will haggle about the amount. By charging you in the rate, payment is spread out over time in the form of a higher monthly mortgage payment. This will upset you less than a cash payment, especially since you are unlikely even to be aware of how much higher the mortgage payment is.
