Minnesota Mortgage Brokers

Minnesota Mortgage Brokers

It’s not uncommon for consumers to be confused about the term “mortgage broker”, it’s often confused or directly associated with a “mortgage lender”. The traditional mortgage landscape has been for banks and other lenders to sell their own loan products. As markets for mortgages have become more competitive, however, the demand for Minnesota mortgage brokers has increased.

Mortgage brokers work with many banks who compete for your business and offer the best possible mortgage rate.

Mortgage lenders offer just one rate, which is that of the bank they work for (Wells Fargo, US Bank, Bank of America etc…).

Interest Rate A/B Scenario

As a mortgage broker, we’re able to reduce interest rates by letting banks compete for your loan. The following scenario reflects a .5% interest rate difference on a $400,000.00 conventional, 30 year mortgage:

Lender Rate

Interest Rate: 4.5%
Monthly Payment: $2,027.00
Total Cost of Loan: $729,627

Broker Rate

Interest Rate: 4.0%
Monthly Payment: $1,910.00
Total Cost of Loan: $687,478

The benefit of a conservative rate reduction of .5% yields a savings of $117.00 per month and $42,149.00 over the life of the loan.

Mortgage Lenders = Single Interest Rate

The mortgage lender will provide their mortgage rate with their loan requirements. A higher interest rate can cost you hundreds per month and tens of thousands over the life of your mortgage.

NMLS MN Certified Mortgages

St. Croix Home Loans, as with all mortgage brokers and lenders, are regulated to assure compliance with banking and finance laws. The NMLS (Nationwide Multistate Licensing System / Nationwide Mortgage Licensing System and Registry) handles National licensing while the Minnesota Commerce Department regulates at the state level.