Typically, when your mortgage closes an agent is paid a commission by the lender. So while you as a consumer don’t pay it directly, you indirectly are paying for that commission through higher mortgage rates. Perch uses technology and automation to reduce costs required to conduct business, enabling us to accept reduced commissions from the lender in order to provide you with a lower mortgage rate.

Some lenders will provide a HELOC along with their mortgage. HELOC’s are essentially like having a regular line of credit, but since it’s secured by your real estate you tend to get a better rate. Here’s an example of how your line of credit limit is determined. Let’s say you own a $500,000 home and the lender is willing to lend up to 65% of the property value ($325,000). However, you only need a $250,000 mortgage. You have the ability to get a $75,000 HELOC along with your mortgage.