Mortgage Refinance Guide

Take a look at your newspaper, turn on the television, or look on the Internet and every mortgage lender you find claims to be the best. How do you filter out the hype, empty guarantees, and bloated closing costs to choose the best lender for your home loan? The best lender for you will be the one that you’ve chosen with a competitive interest rate, favorable loan terms, and will deliver on the loan when you need it. Start your search with referrals; the first step to finding the perfect mortgage is to build a list of potential lenders.

Personal referrals are a great way to find mortgage companies and brokers, so talk to your friends and family members. As with any mortgage company, pay close attention to the Licenses & Disclosure statement found on their websites. Many Internet mortgage companies are nothing more than list brokers and pass your information on to other mortgage companies after padding your Good Faith Estimate with their “Computerized Loan Origination” fees.

How do you know if you can trust a mortgage company or broker?

Check with your local Better Business Bureau and the office of your State’s Attorney General. What good is a “Guarantee” from a mortgage company claiming to give you the best rate if you can’t trust them? Many mortgage companies claim they’re giving you a fantastic deal while slipping Yield Spread Premium in your mortgage rate. Yield Spread Premium is the retail markup of your interest rate by the Mortgage Company or broker and if you agree to pay this markup you’ll end up paying thousands of dollars in unnecessary mortgage interest. You can learn more about how mortgage companies and brokers overcharge their borrowers and how you can avoid paying markup of your mortgage interest rate with my free mortgage video tutorial.