Are you searching for the lowest current mortgage interest rate for your next home loan? Are you worried that hidden markup and junk fees could result in overpaying thousands of dollars every year? Did you know that according to the Secretary of Housing and Urban Development your friends and neighbors are overpaying sixteen billion dollars this year alone? Here are several of my best tips to help you find the lowest current mortgage interest rate without throwing money way on your mortgage broker’s BS or lender junk fees.
Current Mortgage Interest Rate Online
Mortgage quotes are easy to find online; every Tom, Dick, & Harry with a mortgage website will give you a “free” quote without obligation. (Before you call me a hypocrite, yes it’s true…so will my site; however, the difference is that I’m going to show you how see through all the hidden markup and junk fees your neighbors fell for…)
What is this hidden markup I’m going on about? That’s the point isn’t it? …It’s hidden. If it wasn’t hidden your neighbors wouldn’t be throwing away an average of $1200 a year thanks to lender paid compensation known as Yield Spread Premium. What is Yield Spread Premium? Simply put, your mortgage lender pays any broker that locks and closes your home loan with a higher than necessary current mortgage interest rate a kickback known to the mortgage fat cats as Yield Spread Premium.
Why You Need to Avoid Mortgage Yield Spread Premium
Here’s an example to illustrate the problem with this hidden markup of your current mortgage interest rate. Suppose for example you’re refinancing your home and the broker quotes you a current mortgage interest rate of 6.75% on a $315,000 home loan. The broker charges you a mortgage origination fee of 1.5 percent for their work arranging your home loan and brags about the deal they’re getting you.
What the broker isn’t telling you is that you could have had that lender’s lowest current mortgage interest rate of 6.0%; however, this person marked it up to collect a commission from the lender of 3.0% of your home loan amount. This is paid in addition to the point and a half you’re already overpaying the broker for their origination fee.
What the big deal about an extra .75 percent when mortgage refinancing? Your monthly payment on a 30 year, fixed rate home loan at 6.5% will be $2,043 per month. If you had the current mortgage interest rate you deserve at 6.0% your payment will only be $1,888 per month! That’s a difference of $155 per month, a whopping $1,860 per year! Don’t fall for the same trap your neighbors did when mortgage refinancing.
It is possible to pay a flat origination fee of 1.0% of your loan amount and refinance with a wholesale mortgage rate keeping that $1,860 in your pocket for the things that really matter. You don’t have to have a mortgage broker cousin or be a personal finance guru to get a current mortgage interest rate that doesn’t include this hidden markup…you just need to know how to go about it.
You can learn more about mortgage refinancing with wholesale rates without paying junk fees by checking out my free Underground Mortgage Videos.
Here’s a quick sample to get you started on the path to taking back $1,860 per year on your next home loan…mortgage broker be dammed!
My name is Rob Regehr and I’m a personal finance writer with a chip on my shoulder for banks and brokers that take advantage of my friends and neighbors.
Can you help us refinance beings we have been turned down by everyone? We have never missed a payment but have so much debt, student loans, credit cards, mortgage, and 2 mortgage—All we want to do is refinance to make life easier and NO one will refinance us—credit is 690, do not qualify for fha—-no help–don’t want to lose everything we have worked so hard for but no one will allow us to refinance to help us—can you or know what we can do????