I’ve been writing quite a bit about refinance mortgage rates lately because of all the questions I’ve been receiving. Many of my readers don’t know the best way of shopping for a home loan and jump on the first shiny offer that comes their way. The problem with this approach to refinance mortgage rates is that you’ll overpay every time thanks to unnecessary markup and junk fees. Want the best refinance mortgage rates for you next home loan? Here are some of my best tips to help you avoid falling into the same trap as many of your neighbors when refinancing your home.
Refinance Mortgage Rates Online
The internet is an excellent tool for comparing mortgage offers from the convenience of your home computer. The problem with the mortgage rate quotes that you get online, even the ones from local brick and mortar mortgage companies, is that they all have been marked up to create a profit for someone at your expense. If you want the best possible refinance mortgage rates for your next home loan you must avoid this unwanted and unnecessary markup. If the prospect of refinance mortgage rates and unwanted markup sounds discouraging to you, never fear. You don’t have to be a financial guru to get a home loan without this unnecessary markup; you just need to know how to shop.
Unwanted Markup of Your Refinance Mortgage Rates
What is this unnecessary markup of your refinance mortgage rates? Simply put, the person arranging your home loan receives a fee from the lender for locking and closing your home loan with a higher than necessary interest rate. Lenders pay this fee on top of the loan origination fee you’re already paying because your lender knows that home loans with higher than necessary interest rates bring them a premium profit when your loan is sold to investors on the secondary market. This unwanted interest rate markup results in a higher than necessary payment and less cash in your pocket at the end of the month.
So how do you avoid this unwanted markup of your refinance mortgage rates? You can pay less for your next home loan simply by changing the way you shop for loan offers. Instead of comparing Good Faith Estimates until you’re cross-eyed from trying to pick the one with the lowest rates and fees you want to shop for the right person to arrange your next home loan. Once you’ve found the right person you’ll be able to take advantage of the wholesale nature of mortgage rates while avoiding lender junk fees.
Avoid Unnecessary Yield Spread Premium
How do you find the right person to arrange your next home loan? Start by telling potential mortgage brokers that you understand how the markup of refinance mortgage rates known as Yield Spread Premium works and will not accept any loan that includes the markup. Tell them that you will pay a reasonable origination fee for their services of one percent and you’ll be on your way to saving as much as $1200 per year on your next home loan.
You can find out more about getting the lowest possible refinance mortgage rates by checking out my free Underground Mortgage Videos.
Here’s a short video exposing how unnecessary markup known as Yield Spread Premium is fleecing American homeowners out of sixteen billion dollars every year and how you can avoid it.