Broker VS. Credit Union
Hello BP!
I am currently looking to do a cash out refi. I was speaking to a broker that actually got me the loan on this house. He was great, but know looking into doing the refi his rate seems high. He says that a normal refi would be around 4% and to do a cash out it would be 4.5%. I figure doing the cash out is higher risk, so it would demand a higher rate.
I then decided to check out my local credit union and they are telling me that the rate doesn't changed to much, regardless of a refi or cash out refi. Their rate is significantly lower, around 3.8% with the cash out.
Of course, this is just the beginning and I have not yet started the process or signed anything, so the rates might change. Usually, rates don't seemed to change too much once they state them. Is there usually a huge increase in rates between the two refi's? Also, I was under the impression brokers usually get you the better rate, do they work with credit unions?