Frequently Asked Questions

Loan Shopper FAQ

Do all banks have the same interest rates?

No! Banks have different interest rates for many different reasons, including how their bank is structured, their risk tolerance on specific mortgage products, profit margins on loans and commission agreements with mortgage loan originators (MLOs). It is extremely important to receive mortgage quotes from as many lenders as you can to make sure you are getting your best rate possible. That’s where Mortgage Marketplace comes in.

But doesn’t the Federal Reserve set mortgage rates?

Absolutely not! Each individual bank sets their own interest rates. The Federal Reserve sets the federal funds rate, the interest rate that banks charge one another overnight to maintain liquidity requirements. Click the link here for a detailed explanation from Fannie Mae of how mortgage rates are determined.

What makes Mortgage Marketplace different?

Our goal is to bring competition and transparency to the mortgage quoting process while keeping your personal information private.

Other rate comparison websites:

-Collect your name and social security number so they can pull your credit.

-Match you to one lender with their behind-the-scenes algorithm, but did they really compare rates for you?

-Send your information to multiple lenders, and then you get spammed for months and months…

-Charge lenders high fees for your leads, so are you really getting your best loan?

At Mortgage Marketplace we:

-Are 100% free to use for Loan Shoppers and MLOs.

-Foster competition among lenders because lenders will be able to see each other’s quotes. To win your business there will be an interest rate race to the bottom!

-Never collect your name, address or social security number, so you will never have to worry about getting your credit pulled or sensitive information stolen.

-Encourage mortgage education through the Learning Center and by making Loan Shopper scenarios visible to everyone.

-Provide real personalized lender quotes, not AI data.

Is Mortgage Marketplace free to use?

Yes! Mortgage Marketplace is 100% free for Loan Shoppers and MLOs.

What is a Mortgage Loan Originator (MLO)?

An individual who takes a residential mortgage loan application and offers or negotiates terms of a residential mortgage loan for compensation or gain. This can include lenders and brokers. Both lenders and brokers have unique characteristics, so what is the difference? Find out more information on the differences between lenders and brokers by clicking here.

What is a “Loan Shopper”?

A person who is shopping for a mortgage loan to purchase or refinance a residential property. The usual name for a Loan Shopper is a “consumer” or “borrower”.

What are Lender Fees?

It is standard for lenders to have fees for a mortgage application. MLOs on Mortgage Marketplace include all fees listed on Sec A and Sec B of your Loan Estimate, which can include fees like Origination Points, Appraisal Fee, Credit Report Fee, etc.

What is a Loan Estimate?

This is an official mortgage document that will provide specific details about your loan terms. Click here to use the CFPB’s Loan Estimate Explainer to learn what exactly is on a Loan Estimate.

How do I receive mortgage quotes?

Click “Post Your Details” on the website header. Fill out the form and click “Post Your Details” at the bottom of the page. MLOs will see the form you post and will respond with personalized rate quotes!

How do I see my quotes?

After you post your Loan Shopper details, remember the unique Loan Shopper Name that you created. You can search this Loan Shopper Name in The Marketplace search bar, then click your row. This will take you to your Loan Shopper Details Page where you will see all your quotes and MLO contact information. MLOs do not have your information, so you have to reach out to them! We designed it this way, so you don’t get spammed for months and months and months…

What are Points?

A percentage of your loan amount charged to you at closing by your MLO. For example, 1 point on a $500,000 loan amount will equal a $5,000 fee. Charging points allows MLOs to assign lower interest rates. Sometimes it is useful for mortgage consumers to pay points and have a lower rate, sometimes it is not. Make sure you compare apples to apples when shopping for a loan, which is what makes an APR useful.

What is an “APR”?

The Annual Percentage Rate (APR) is the yearly cost to borrow money, including any mandatory fees, expressed as a percentage of the loan amount. One broker may find you a 5% interest rate, but charge points, bringing your APR up to 6.5%. Another lender may assign a 6.375% interest rate and charge $0 points, leaving you with a 6.5% APR. Both scenarios are acceptable; it is up to you if you prefer to pay more up front and have lower monthly payments or pay less up front and have higher monthly payments.

Why do I need to list a “Home Value”?

Your Loan Amount divided by your Home Value gives you a “Loan to Value” (LTV). Typically the lower the LTV, the lower the rate. Your Home Value is usually determined by an appraisal. For a purchase you can list the purchase price of the home as the Home Value. For a refinance you can list your best estimate for the home value.

What should my loan amount be?

For a purchase your loan amount is the purchase price minus your down payment. For a refinance your loan amount is your current mortgage balance. Some mortgage products, like Freddie Mac’s Home Possible and HomeOne Mortgage, allow you to put as little as 3% down. FHA loans allow you to put as little as 3.5% down. While this helps with affordability if you do not have a lot of cash, it will leave you with a higher loan amount and therefore a higher monthly payment. If you put less than 20% down, mortgage insurance will be required, which will add to your monthly payment. Each mortgage consumer’s situation is unique, so it is best to speak with multiple MLOs and ask for their advice.

What is a “Mortgage Product”?

Lenders create different types of loans for consumers depending upon their needs. These different loan types are called “products”. Are you buying a Single Family Residence or a Condo? Are you buying an Investment Property or a Primary Home? Do you want a 30-year fixed term or an Adjustable-Rate Mortgage (ARM)? Know your mortgage scenario and shop around so you find the right product for you.

What is a Lender?

A financial institution that makes direct loans with its own funds.

What is a Broker?

An intermediary that matches mortgage consumers to lenders.

What is an NMLS number?

The Nationwide Mortgage Licensing System (NMLS) is an online platform where lenders, brokers and banks maintain their mortgage licenses. The NMLS was created to help protect consumers against fraud. Before contacting an MLO, you should confirm their license and phone number on the NMLS website by clicking here. It will take 30 seconds and can help protect you from fraud.

What is P&I? What is PITI?

This is an acronym for Principal & Interest, which is what you agree to pay the lender per month. The Principal part of the payment pays down the loan balance for the money you borrowed, and the Interest part of the payment is what the bank receives for compensation for loaning you money. If you choose to set up an escrow account for Taxes & Insurance, then the total monthly payment will be “PITI”, which is the acronym for Principal, Interest, Taxes & Insurance. If you choose to waive an escrow account, you will be responsible for paying your yearly insurance premium directly to the insurance company and property taxes directly to your county.

What is an escrow account?

This is an account set up by your lender that the mortgage consumer contributes to monthly for property tax and insurance. Lenders like to see mortgage consumers with an escrow account so the consumer is not stuck with a large quarterly tax bill or yearly insurance bill. When the consumer’s property taxes and insurance payments are due, the lender automatically makes these payments with the escrow account balance. If you sell your home or refinance your loan, you will receive a full refund of the escrow account balance.

Does Mortgage Marketplace verify MLOs?

When a MLO signs up with Mortgage Marketplace, an NMLS number must be input and the associated email address is confirmed with a unique verification code. All lenders and brokers are required to have an NMLS number, so always verify your MLO’s NMLS number and contact information by clicking here.

Need Customer Service support?

Use the link in the website footer to Contact Us. Leave us a message and we will promptly reply.

Lender FAQ

What fees should be included in “Lender Fees” when posting a rate quote?

Include all fees in Sec. A and Sec. B of your Loan Estimate.

How do I post a rate quote?

Click “The Marketplace” in the website header and click a row in the table. That will take you to the Loan Shopper Details Page. Click “Post Quote” and post your best rate.

How does an MLO know the Loan Shopper is a real person?

Before a Loan Shopper can post their loan details, the associated email address is verified with a unique code.

Can MLOs contact a Loan Shopper?

No. Loan Shoppers will reach out to MLOs when they are ready to move forward.

Does an MLO need to register to post a quote?

Yes. MLOs are required to register for Mortgage Marketplace with their NMLS number, bank or business name, contact information and states in which they are licensed to act as an MLO.

Can I delete or edit my quotes?

Yes. An MLO can edit and delete quotes in the Manage Quotes tab.

Are there any fees or profit share on closed loans to use Mortgage Marketplace?

No! Mortgage Marketplace is 100% free for all MLO’s.

Can I receive notifications if a new scenario is posted?

Yes! If you leave The Marketplace open on your browser, you will receive a notification that a borrower is looking for a quote in one of your states even if you have a different tab open. You can turn notifications off in your browser.

Need Customer Service support?

Use the link in the website footer to Contact Us. Leave us a message and we will promptly reply.