If you’re a Connecticut mortgage holder considering mortgage refinancing there are several things you’ll want to know to avoid paying too much. There are a number of junk items that will lead to paying too much for your Connecticut Refinance loan. Here are several pointers to assist you fending off junk fees and markup when refinancing your home.
Connecticut Refinance Hints
The first thing you’ll need to know about the mortgage offers you receive is that nearly all of them are marked up to create a commission for the mortgage broker arranging the mortgage or to produce the greatest profit when your mortgage is sold-out on the secondary mortgage market to investors. There’s nothing wrong with this person netting a fee on your Connecticut refinance; nonetheless, you shouldn’t need to keep paying this commission every year that you keep your home loan. The loan origination points you’ll pay at the closing table is plenty compensation for the person arranging your loan and one point is a reasonable fee to pay off for their work.
What about mortgage refinancing with a bank or credit union in Connecticut? The trouble with banks is that they inflate home loan rates as to create a premium for the bank or credit union when your home loan is sold. Thanks to a back door in our RESPA legislation the bank does not have to reveal this markup or the profits in the State of Connecticut. This is the reason you should never refi a mortgage with your bank. Brokers aren’t much better but they do have one good quality and if you line up the right mortgage broker for your next Connecticut Mortgage you’ll save thousands of dollars in the process…here’s what you need to know.
Brokers Get Par Rates
Connecticut mortgage brokers have access to par mortgage rates, something you’ll not receive from a bank. What is a par interest rate? Simply put it is a mortgage rate that won’t cost you anything to get and does not create a bonus for the mortgage broker arranging your next home loan. Lenders pay an extra commission to mortgage brokers that close your mortgage with above market interest rate. If you take a steeper than necessary rate for your Connecticut Refinance your home loan payment will cost you $1200 every twelve months higher than it needs to for the average Connecticut mortgage loan. You got it; this fee based inflation of your interest rate will ultimately set you back you one thousand dollars every year or more on your family’s next mortgage loan. You’re already forking over this markup on the current home loan and simply didn’t see what your mortgage broker pulled at the time. According to our government this unnecessary inflation of the interest rate will fleece Connecticut homeowners out of sixteen billion dollars this year alone.
You Can Catch a Low Mortgage Rate
You don’t have to be the finance genius to leave the closing table with a par mortgage rate. You only have to locate the right mortgage broker to set up your home mortgage. The correct person for the job probably won’t feature a full page advertisement in the phone yellow book. Mortgage brokers with posh offices and advertising costs will be unwilling to strike a deal for the mortgage loan you’re wanting with your Connecticut refinance loan. Line up a the right broker with no operating expenses and you’ll be able to easily negotiate the home loan I’ve described here.
You can learn more information information avoiding junk charges and the inflation of your Connecticut Refinance by registering for my home refinancing video guide. Register now and you’ll have direct admission to the Underground Mortgage Videos and a list of up-front Connecticut brokers without down loading anything to your Mac or PC.