Are you a California homeowner thinking about refinancing your home mortgage loan? If so there are several things you’ll want to know to avoid overpaying. There are junk fees that result in overpaying for your next California Refinance loan. Here are several pointers to help you fending off these junk fees and markup when refinancing your home.
California Refinance Tips
One thing you should know about home loan offers you receive is that nearly all of them are marked up to create a commission for the broker setting up the home loan or to make the greatest profit when the loan is sold-out on the secondary mortgage market to investors. There’s nothing wrong with the mortgage broker getting a commission for your next California refinance; nevertheless, you don’t have to keep paying this commission for as long as you hang on to the mortgage. The loan setup fee you’ll fork over at closing is more than ample compensation for the mortgage broker and 1.0 percent is a reasonable compensation to ante up for their work.
What about home loan refi with a bank or credit union in California? The trouble with banks is that banks & credit unions mark up home loan rates to produce a premium for the bank when your mortgage is sold. Thanks to a back door in the RESPA legislation the bank or credit union is not required to disclose this markup or their profits in the State of California. This is why you should not refinance a mortgage with a bank or credit union in your State. Brokers aren’t great either; however, there is one smashing quality and if you line up the appropriate person to arrange your California refinance you’ll save thousands…here’s how.
Mortgage Brokers Have Par Interest Rates
California brokers can get wholesale mortgage rates, which you will not get from your bank or credit union. What’s the par interest rate? Basically, it is a mortgage rate that won’t cost you a fee to get and doesn’t produce an extra commission for the broker arranging your loan. Mortgage lenders pay an extra commission for mortgage brokers that close your home loan with above market interest rate. If you accept the broader than necessary rate for your California Refinance your mortgage bill will cost you an extra grand per year more than it needs to for the average California homeowner. You got it; this fee based inflation of your mortgage rate will ultimately set you back you over a grand per year extra on your next mortgage loan. You’re probably already forking over this inflation on your current mortgage and merely did not see how your broker played you. According to the government the unneeded inflation of the mortgage rate will cost California homeowners sixteen billion clams this year alone.
You Can Find a Lower Mortgage Rate
You need’nt be the money guru to walk away from your closing with a wholesale interest rate. You only have to see the proper person to arrange the home loan. The best person for the job probably doesn’t get costly ads in the telephone book. Brokers with expensive office spaces and publicizing costs will most likely be reluctant or unable to negotiate the home loan you’re searching for with your California refinance loan. Get a the right broker with zero operating costs and you can easily find the deal I have described today.
You can find more tips & information about avoiding junk fees and the inflation of your California Refinance by registering for my Underground Mortgage Videos. Register now and you’ll have direct access to the mortgage videos and a list of freelance California mortgage brokers without downloading files to your Mac or PC.