GET REAL – Big Banks

Should you call a big bank to get the lowest rate? Nope!

Let’s get real about big banks. Some folks think that they need to go to a big bank like this one to get the best mortgage rate on their next home loan. When in actuality, nothing could be farther from the truth.

Chase Bank, the largest bank in America, has nearly 5,000 branches just like this one all across the country. In 2022 alone, they spent nearly $3 billion in advertising. So think about it…big banks with big expenses like this they need to earn big time interest on the loans that they issue in order to make a profit.

Last month as an example, I had a longtime acquaintance of mine reach out to me because he was in contract by a new house. He’s a big time depositor with Chase Bank so he reached out and got a home loan quote from them thinking that they would give him a smoking deal. Well, I was actually able to find a lender of mine that offered him an interest rate nearly half a percent lower than Chase’s rate saving hundreds of dollars every month on his mortgage payment.

So here’s the deal…as a mortgage broker over the last 20 years I don’t work with big retail banks that spend billions on advertising and rent. Instead I work with reputable wholesale lenders that have much lower overhead expenses and as a result they and I can offer you better rates.