Should You Work With a Mortgage Broker or Stick With Your Bank?

Buying or refinancing a home is one of the biggest financial decisions most people make. The question often comes up: should you go with a trusted bank like Chase, or work with a mortgage broker who can shop around on your behalf?

With home prices rising and lending rules sometimes feeling overwhelming, knowing how to compare options can save you thousands over the life of a loan.

What a Mortgage Broker Does

A mortgage broker acts as a middleman between you and multiple lenders. Instead of submitting applications to one bank, a broker can compare loan products across many institutions. This can:

Potentially get you a lower interest rate
Speed up the approval process
Give you access to more loan types (FHA, VA, conventional, jumbo)

For many borrowers, brokers feel more personable. Their business depends on referrals and repeat clients, so their service tends to be hands-on.

What a Bank Like Chase Offers

Big banks appeal to homeowners because they feel safe, established, and convenient. If you’re already a customer, you may qualify for “relationship pricing” or private client discounts. For example, jumbo loans often make sense to keep in-house with a bank because they can offer highly competitive rates when large balances are involved.

The tradeoff? Banks can be less flexible. Their internal policies sometimes limit how competitive their rates can be for conventional loans. Borrowers also report the process can feel more transactional.

Public Perspectives on Brokers vs Banks

Borrowers who have used both options highlight clear differences:

Brokers often win on conventional loans. People find that local brokers beat big banks on pricing for FHA and conventional loans.
Jumbo loans can still favor big banks. Some borrowers say Chase offered strong deals for jumbo loans, while brokers had less room to compete.
Service matters. While banks process loans in bulk, brokers rely on building long-term relationships. Clients often report faster closings and fewer headaches with brokers.
Not all online lenders are equal. Some large online-only mortgage companies draw mixed reviews, with complaints about poor communication.
Shopping is worth it. Even those loyal to a particular bank admit it pays to compare multiple quotes.

One homeowner summed it up best: if you’re willing to put in a little more effort upfront, you could save thousands over the life of your loan.

Why Effort Pays Off

A mortgage isn’t a short-term expense. With terms ranging from 15 to 30 years, even a quarter-point difference in interest rates can equal tens of thousands of dollars in savings.

For example:

On a $600,000 loan, a 0.25% lower interest rate could save nearly $30,000 over 30 years.
Faster closings can prevent you from losing a home in a competitive market.
Better loan structures (like fixed vs adjustable rates) can help align your mortgage with your long-term plans.

Market Trends You Should Know

Mortgage Rates Are Falling

As of September 2025, 30-year fixed mortgage rates have dipped to about 6.5%, the lowest level in nearly a year. That’s down from over 7% earlier this year, saving the average borrower more than $1,600 annually. For buyers, this creates a rare window to refinance or purchase on more favorable terms.

Insurance Premiums Are Rising

At the same time, homeowners are facing higher costs on the insurance side. Across the U.S., premiums have jumped more than 20% in just two years, and regulators recently approved major insurers’ requests for double-digit hikes on homeowners policies. That adds real weight to monthly budgets.

Why This Matters

The combination of easing mortgage rates and rising insurance costs means saving money on your loan has never been more important. Every dollar you save in interest helps offset insurance hikes and protects your long-term affordability.

Tying It Back to Insurance

Your mortgage decision directly impacts your overall financial picture, and that includes insurance. Lenders require proof of home insurance before closing, and this step can hold up a deal if not handled quickly.

Working with both a responsive mortgage broker and an insurance agency that understands the process makes a difference. If your loan closes faster, you need your home insurance quote just as fast.

At our agency, we regularly work with mortgage brokers to coordinate directly with lenders. That way, your home insurance quote is ready, accurate, and accepted without delays.

Practical Next Steps

Get a Quote From Your Bank if You’re Already a Customer

Call or log in online: Most banks, like Chase, Wells Fargo, or Bank of America, allow you to start the mortgage quote process directly from your online banking portal.
Ask for “relationship pricing”: If you have checking, savings, or investment accounts with them, ask whether you qualify for interest rate discounts or reduced fees.
Request a Loan Estimate (LE): This is a standard form lenders must provide, outlining your rate, monthly payment, fees, and estimated closing costs.

Tip: Don’t settle for a verbal quote. You want the official written estimate so you can compare apples-to-apples later.

Reach Out to a Trusted Local Mortgage Broker

Search for brokers with strong reviews, or ask your realtor/insurance agent for referrals.
Provide the same financial info you gave your bank (income, credit score, down payment, property details).
Ask for multiple lender options: A good broker should come back with a side-by-side comparison of at least 2–3 lenders.

Tip: Tell the broker upfront that you’re also getting a quote from your bank. This motivates them to bring their most competitive options.

Compare the Numbers Side by Side

Line up the Loan Estimates: Put your bank’s LE next to the broker’s.

Focus on three areas:

Interest rate (and whether it’s fixed or adjustable)
Closing costs (lender fees, appraisal, underwriting, title)
Monthly payment (including principal + interest, taxes, insurance, HOA if applicable)
Calculate total cost over 5–10 years: Sometimes a slightly higher rate with lower fees can be cheaper if you won’t stay in the house long-term.

Tip: Create a simple spreadsheet with columns for each lender so you can clearly see which option saves you the most.

Request Your Home Insurance Quote at the Same Time

Contact your insurance agent: Provide the property address, estimated closing date, and loan details.
Ask for a dwelling coverage estimate that matches the rebuild cost of the home (not the purchase price).
Request quotes with and without bundling (home + auto, or home + umbrella) to see if you can reduce your overall premiums.
Send proof of insurance to your lender: Lenders require a binder (evidence of insurance) before they’ll close the loan.

Tip: Ask your insurance agent to coordinate directly with your lender or broker so you’re not stuck being the middleman.

Putting It All Together

Step 1: Secure a Loan Estimate from your bank.
Step 2: Get options from a broker.
Step 3: Compare them side by side.
Step 4: Request your home insurance quote while you’re waiting for loan approvals.

That way, when it’s time to close, you’ll already have financing and insurance locked in, and you’ll know you’re getting the best deal on both.

Our Referral Network

We partner with mortgage brokers who help clients shop for the best rates while we provide tailored home insurance quotes. Together, this saves time, reduces stress, and positions you for smoother closings.

One of our trusted partners is Joe Tishkoff with Paramount Residential Mortgage Group in Sherman Oaks. Joe and his team have years of experience guiding clients through the mortgage process and consistently deliver competitive options. You can learn more about him at homeloansbyjoe.com.

If you’re ready to explore your options, contact us for a home insurance quote today, and we can connect you directly with Joe or one of our other mortgage partners to help you compare financing offers and move forward with confidence.

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