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Online mortgage quote: Why You May Not Be Getting The Best Rate

While shopping online for online mortgage quote can be great in terms of saving time and convenience, 
it won’t necessarily get you the best deals available. What you save depends to a great extent on the way 
you negotiate with lenders for the online mortgage quote. Like with any negotiation, you get the upper hand 
when you are knowledgeable about how the industry works.

One of the main precautions to take on when looking for online mortgage quotes is to ensure that the 
brokers you deal with represent several different lending institutes and therefore can offer you a good 
variety of options. Beware of brokers who are merely lender agents in disguise. If a broker represents 
only one bank or lender, there is a great likelihood that you will not be offered the online mortgage quote 
that is most suitable for your needs.

In devising consumer protection laws for online mortgage quotes and increasing convenience, states 
have ultimately ended up having an adverse impact on competition, apart from making online mortgage 
costs higher than necessary.

Explaining The Costs
Most states do not require online mortgage businesses to have a brick and mortar presence. However 
about one third of all states make this a mandatory requirement. Due to this, the expenses increase. 
Laws of this nature have prevented mortgage brokers from being exclusively online and offering much 
lower rates.

It is mostly the existing brick and mortar mortgage brokers who are the blame for the laws in a bid to 
minimize competition. The laws have also led to a multi-state licensing system due to which national 
mortgage firms with a presence in all states get an unfair online advantage over the competition. 
These companies don’t have to put in money into costly infrastructure apart from enjoying lower 
transaction costs and can therefore offer lower rates to consumers.

The Bottom Line
The reality is that the online companies who face compulsion to bear the costs of renting offices, 
employing a workforce and infrastructure and equipment which they would otherwise not require, 
choose to avoid doing business in that particular state altogether.

The end result is that it is the consumer who is eventually at a disadvantage. Their options are limited 
further for sources of capital and the competition among lenders is also less intense.




About the author:
Paul Lerner enjoys writing about a variety of mortgage topics, including advice on getting an online 
mortgage quote. See http://www.freemortgagequoteguide.com/articles/online-mortgage-quote.php 
for more information.





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