This is important to keep in mind.  Mortgage Brokers are not your friend, nor are most online mortgage sites non-profit.  Money is changing hands somewhere and you need to understand how these folks are paid so you can see where their interests maybe different from yours.

For example, a mortgage broker’s compensation on a transaction may be in the form of “points” paid at closing (an add-on to your interest rate) or a flat fee.  Be sure to ask each mortgage broker how they get paid and how much prior to working with them.  Mr. Thrifty once received a shocker when he was closing on his first house to see a $2,000 charge stuck on the closing statement by the mortgage broker.  The fee was greatly reduced when Mr. Thrifty threatened to back out of buying the house.  One lesson is that you are better off asking up front than potentially getting a “surprise” at closing.

Another secret that a mortgage broker might not be telling you is that they can be compensated more if they steer you to a particular bank or mortgage lender.  Given this, guess who they typically recommend when they get you quotes?  You can fight this through pure competition.  Get quotes from several mortgage brokers and have them fight for your business.  Only the suckers end up with the higher interest loans.

Onto websites.  Most of the mortgage sites online that promise you several quotes (like LowerMyBills) will sell your information to several mortgage lenders that offer mortgages in your area.  Typically the sites are paid anywhere from $50-$100 for selling your information to mortgage lenders.  They are incented to get you to fill out their forms so they can get paid. Websites aren't bad, but realize that once you have clicked on “submit” don’t expect much help from them in the process.