Tell the broker what Countrywide is offering. If you are getting 100% financing, I can see why the interest rate and point.

Brokers are not the the actual lenders, they contract the loans from banks and other sources. So, the can "shop" for the best to offer you. He can certainly contract through Countrywide for you. However, one thing is what Countrywide offers you before qualifying you (getting your credit score, know your financial situation), and another is what they will qualify you for. The reality may be different thant the 6%, 0 points.
References :
Austin Realtor

To ask the broker to match the rate would probably mean asking them to make no money on the deal. It's the same difference between shopping at Wal Mart or supporting your local drug store. The local guy probably costs a bit more, but you get to feel good about going with the local guy rather then supporting a heartless big chain store.

Looking at my own rate sheet, it doesn't appear that the broker is being a pig about it, but the way the business is structered demands that they charge you a bit more so they can eat. Remember, they don't get paid if you don't close.

Good Luck.
References :

The broker is ripping you off. Those rates are obscene and as a broker myself, i'm ashamed of what my peers are doing. Yes, brokers are helpful in so many ways but that doesn't mean they deserve a $15,000 check for information. I've attached a pdf under my sources down below for you to check out.

Brokers are not created equal. If you want to work with them in the future, ask these following questions first:

1) What are your top 10 banks that you work with? if you don't recognize the banks, get the hell out of there. Top brokers typically stick to the major banks like Wamu, wells, countrywide, citi, chase, usbank and GMAC.
2) Am i getting the "par" rate? This is asking them to disclose the rate the bank qualified you for without any additional cost to you and without any yield spread (kickback) coming from the bank.
3) Are you with the Better Business Bureau? So many people don't research this. If they're not a member, don't trust them. go to http://www.bbb.org to find them.

I'm sorry that this broker is taking you for a ride. It's a shame but most brokers aren't regulated very well.
References :
http://www.diamondcg.com/pdf/brokersvsbanks.pdf

Don't feel guilty – one point on a jumbo is a lot of money. Many times mortgage brokers think they can charge more on referred deals, since the client is less apt to shop around.

That being said, I checked rates, and it hard to believe Countrywide and Quicken would charge 0 points for those rates. So be careful. Get a Good Faith Estimate to see if there are other charges included.

By the way, with all due respect to Farina below, a 7-year ARM is okay, especially if you have good credit and you only anticipate being in the home a few years. Foreclosures happened mostly to people who took out 2 or 3-year ARM subprime mortgages. The rates adjusted up, and because the subprime loan programs no longer exist, they can no longer refinance out of it. Subprime ARM rates always adjust higher due to a high margin. "A" paper ARM (both conforming & jumbo) rates adjusting today are actually going DOWN.
References :
Mortgage broker for the last 7 1/2 years.

I've been doing some rate shopping today. It looks like we could get a better deal through a direct lender than with our mortgage broker.

The broker quoted us a 7/1 jumbo ARM at 6.125% and a 30-yr fixed jumbo at 7.125%, both with 1 point. I've spoken with Countrywide and Quicken Loans, and they are quoting me roughly 6% on the 7/1 and 7% on the 30-yr fixed, both with 0 points.

So, two questions:
1) I'm feeling guilty about going with one of the other lenders after this mortgage broker has been so helpful to us. What do you think?
2) Why the difference in rates between the lenders and the broker? Is there a catch?

Thanks!
Update, Thursday 3/6.
Thanks, everyone, for the responses.
I've done a little more digging, and — surprise! well, not really — the rate my mortgage broker was quoting was actually pretty good. Turns out, she was qualifying us for essentially a "stated income" loan, because we won't sell our current house till after we've closed on the new one. So, all those lower rates I heard from other lenders wouldn't actually be available to us.
Lessons learned? 1) My mortgage broker really should have been more clear in explaining the circumstances of our loan; 2) I should have called her as soon as I saw lower rates and asked why hers were higher; 3) lots of loans sound good at first, until you really start digging into the details.

I'd have to say that you should look at the future and try to put your money where it has the best potential to gain value.

Forget about BofA and think of where your money should be. If you believe that BofA has the best potential going forward, stay with the stock. If another investment is a better place, move your funds there.

Managing your money is like driving. Always look at where you are going and not where you are at.
References :
http://Investing-School.com

http://sites.google.com/site/rachelsmomclub/
References :

edit (follow up):
To my knowledge of Warren Buffet's investment history, he NEVER buys bankrupt or virtually bankrupt companies.

The companies the other poster listed may just be a Value Trap!
http://www.investopedia.com/articles/stocks/08/value-trap.asp

It's your money.
References :
Recent post on B of A (BAC)
http://answers.yahoo.com/question/index;_ylt=AmLOKDsarFomDQ3u7SgiBrvty6IX;_ylv=3?qid=20090116120339AAYmSN3&show=7#profile-info-cgJQHjrNaa

Recent post on Citigroup (C)
http://answers.yahoo.com/question/index;_ylt=AogIz04Feo19cUcoLuuXQKHty6IX;_ylv=3?qid=20090116193102AAHC5Wx&show=7#profile-info-NnSCEjCFaa

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The bailout for the largest US bank by assets is aimed at helping Bank of America absorb broker Merrill Lynch, which faced a meltdown last year as the credit crunch intensified.

A joint statement by the US Treasury, Federal Reserve and Federal Deposit Insurance Corporation (FDIC) said the government would invest 20 billion dollars in the bank, on top of a 25-billion-dollar injection last year under the Troubled Asset Relief Program (TARP).

Additionally, the government "will provide protection against the possibility of unusually large losses" on 118 billion dollars of assets backed by residential and commercial real estate loans, the market for which has been frozen due to the housing meltdown and credit crisis.

The banking giant will pay the government a dividend of eight percent on the investment and agree to limits on executive compensation. The bank also agreed to implement a "mortgage loan modification program" to limit foreclosures that threaten to undermine a recovery in the housing sector.

The announcement came hours before BofA released its fourth-quarter earnings. The Charlotte, North Carolina-based bank posted a loss of 1.7 billion dollars, after managing a profit of 268 million dollars a year earlier.

The results stem from soaring credit costs and massive write-downs. Merrill Lynch, which was not included in the results, lost over 15 billion dollars in the quarter.

The bailout comes with US authorities scrambling to avert a further collapse in the banking sector that could deal another blow to an ailing economy. A similar deal was announced last year with Citigroup.

"The objective of this program is to foster financial market stability and thereby to strengthen the economy and protect American jobs, savings, and retirement security," the Treasury said.

But some analysts were skeptical and Bank of America shares fell 13.7 percent to 7.18 dollars after a dive of 18 percent on Thursday.

"These measures have seemingly removed a worst-case scenario for equity holders, but they show just what a mess Bank of America has managed itself into," said Patrick O'Hare at Briefing.com.

Even as other banks reeled, Bank of America appeared healthy enough to buy up troubled mortgage lender Countrywide Financial last year as well as Merrill Lynch.

But Robert Brusca at FAO Economics said the bank "simply bit off more than it could chew."

Peter Cohan of Peter Cohan & Associates consulting firm said Bank of America rushed to buy Merrill without a full understanding of its troubles.

"The numbers clearly show that without Merrill, Bank of America would be in relatively good shape, but with it, Bank of America is a financial basket case," Cohan said.

Standard & Poor's said it could downgrade the bank's credit rating and warned that BofA faces the possibility of "further write-downs" from Countrywide and Merrill Lynch.

BofA has already received 25 billion dollars in capital injections from the TARP, a US financial bailout fund set up to help rescue mainly banks reeling from financial turmoil triggered by a home mortgage meltdown. That included 10 billion dollars for Merrill Lynch.

Under the latest agreement, BofA will absorb the first 10 billion dollars of losses and the US taxpayers will cover the next 10 billion. Any additional losses will be shared 90 percent by the US government and 10 percent by BofA.

The government aid comes as the banking sector remained in deep trouble from the real estate meltdown and subsequent credit crunch that has led to around one trillion dollars in worldwide losses.

Citigroup announced Friday a quarterly loss of 8.29 billion dollars and said it was splitting into two businesses in an effort to restore profitability.

Bank of America on September 15 announced it was buying Merrill Lynch for 50 billion dollars in stock, scooping up the Wall Street icon battered by the housing and credit crisis.

While giving a lifeline to a troubled Wall Street giant, the deal created the world's largest financial services company.

The announcement came at the close of a tumultuous weekend that saw Wall Street rival Lehman Brothers seek bankruptcy protection, leading to an intensification of the crisis in the global financial system.

They cant even survive after M&A with bad debts out b4 they M&A so a waste of taxes-payer $ . so i have a chance to sell it .
I not invest in all companies that have been bailed out is as good as they dead.

After we got our pre-approval, a relative suggested we shop around for a better loan. I called 3 mortgage brokers. All 3 told me we were getting the best deal with our current FHA. Woo Hoo!
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