Interest Rates & the Role of the Broker

[Derek Kitchen]

Hello BP,

Jumping right to it, I'm wondering how do I know if the interest rate my mortgage broker is telling me is "good" or the best I can get?  Can/Is he ripping me off or is this federally regulated therefore no worries?

To provide some context, I have a 780+ credit score, looking to borrow $142,000 with a completely clean history and no loans.  The broker even said I'm WAY overqualified for a loan of this amount.  Yet, I was still told in an email from the broker:

Term of Note: 30 year

Amortization: 30 year

Interest Rate: 4.5% (I usually recommend using “Market Rate”)

Loan Program: Conventional, 30 Year Fixed

Loan Origination/Discount Fees (as a % of loan amount): 0 (I usually recommend using “Market Rate”)

4.5% seems rather high, given that every online calculator I can find online (granted that they aren't too accurate) quotes me at around 3.9% APR. Example from myfico.com:

What should I do?

Get a second quote from something else quickly, like Rocket Mortgage? (I'm trying to get as little hard inquiries on my credit as possible, even though it's high)

Is the broker being fair?  He's a nice dude who has explained things well to me, has been serving the community for 30 years, and seems to have my best interests in mind.

Is the broker "on my side" or should one treat them like car salesmen (respectful but aware that they are trying to sell you for the highest price possible)?

Seeing as I'm in the middle of trying to submit an offer on a place, any thoughts/insights are much appreciated!

Thanks,

Derek