According to the U.S. Department of Housing and Urban Development mortgage brokers’ closing costs are higher than those of other lenders. The study indicated that those that used a mortgage broker paid on average $300 to $425 more than those that dealt directly with a lending institute. The report also stated that African American and Latino families were hit more often with these additional fees.

There are an awful lot of organizations that strongly disagree with these findings. Pete Ogilvie who is the president for California Assoc. of Mortgage Brokers claims says this is hogwash since they have studies that say exactly the opposite. Those that use mortgage brokers actually pay less.

Why the discrepancies? Well a good deal could have to do with economics. When you’re shopping for a mortgage there’s many variables that come into play including variations in interest rates and terms, and yes closing costs. Many of these variations are based on credit ratings and even earning power and it’s a well-known fact that most African American and Latino workers make significantly less. That means the closing cost numbers would be skewed as a result of earning.

It seems that those with a college education and a good paying job are paying significantly less, not just in mortgage broker costs but in interest rates too and that has much to do with their excellent credit scores, which play an important role in your negotiating powers.

It would seem that for the most part those in the market to buy a home are happy with what mortgage brokers have to offer in services and there prices. 80% of all mortgages involve a mortgage broker. Like any service, the key is to shop around and price compare.