A mortgage broker is like a mall for mortgage loans. Mortgage brokers have a great selection and they can help you sift through the many varieties to find exactly the right one for you. But, just as in any profession, there are good brokers and bad ones. Research interest rates carefully before you visit a mortgage broker to make sure you're getting a good deal.

A mortgage broker makes money by adding a small commission to each loan. The broker will issue the loan at a slightly higher interest rate, then sell the mortgage to another bank for a profit. You may still get a better rate by using a mortgage broker, since the broker gets rate sheets from all the lenders in your geographical area, and can choose the lowest rates.