If you’re a Colorado homeowner considering mortgage refinancing there are several things you’ll want to know to avoid paying too much. There are several junk fees that result in paying too much for your next Colorado Refinance loan. Here are several tips to help you in fending off unnecessary fees and markup when taking out a new home mortgage loan.
Colorado Refinance Tips
The first tip you’ll need to know about the rate quotes you receive is that almost all are marked up to create an extra comission for your broker arranging the loan or to make the greatest profit when your loan is sold on the secondary mortgage market to investors. There isn’t anything wrong with this person getting a commission for your Colorado Refinance; even so, you shouldn’t have to keep paying this commission for as long as you keep your mortgage loan. The mortgage origination fee you’ll pay at the closing table is more than sufficient compensation for the person arranging your loan and 1.0 percent is an ample compensation to give for the part.
What about home refi with a bank or credit union in Colorado? The problem with banks and credit unions is that banks mark up mortgage rates to create a premium for the bank when your home loan is sold. Thanks to a back door in the Real Estate Settlement Procedures Act the bank or credit union does not have to tell you about this inflation or their profits in the State of Colorado. This is why you should not refinance a home loan with a bank in Colorado. Your mortgage broker isn’t great either but they do have one redemptive characteristic and if you find the right broker for your Colorado refinance you’ll hold on to thousands…here’s why.
Brokers Have Par Rates
Colorado mortgage brokers have access to wholesale interest rates, something you’ll never obtain from a bank or credit union. What’s a wholesale interest rate? Simply put it is an interest rate that won’t cost you anything to get and does not make a bonus for the mortgage broker arranging your loan. Mortgage lenders pay an extra commission to mortgage brokers that lock and close your home loan with higher than necessary rate. If you accept this higher than market rate for your Colorado Refinance your home loan payment will cost you well over a grand per year more than it needs to for the everyday Colorado homeowner. That’s right; this commission based markup of your interest rate will ultimately set you back you $1200 per year plus on your family’s next home loan. You’re probably already forking out this inflation on your existing mortgage and simply didn’t recognize what the broker pulled at the time. According to the government the unneeded markup of your mortgage rate will fleece Colorado homeonwners out of sixteen billion bucks just this year.
You Can Catch a Wholesale Mortgage Rate
You don’t have to be the financial rock star to walk away from the closing table with the lowest mortgage rate. You simply have to find the ideal mortgage broker to originate your home mortgage. The right person for the job probably won’t take a full page ad in the yellow book. Mortgage brokers with posh offices and advertising expenses will be unwilling to negotiate the home loan you’re looking for with your Colorado refinance loan. Enlist the right broker with no overhead and you can quickly negotiate the home loan I’ve described today.
You can find out more about averting junk charges and the inflation of your Colorado Refinance by checking out the Underground Mortgage Videos. Sign up now and you’ll get instant access to the video guide and a list of self-employed Colorado mortgage brokers without downloading files to your computer.