Which is the best bank to refinance your home mortgage loan? Are bank home loans a good deal or are they loaded with hidden markup and junk fees? Here are several tips to help you answer the question “which is the best bank to refinance without overpaying” for your next home loan.
Best Bank to Refinance or Not?
There’s a problem with choosing a bank for your next home loan that they don’’t want you to know about. You see, banks are exempt from the Real Estate Settlement Procedures Act, which requires brokers and lenders to disclose their profit margin and markup of your home loan. Thanks to this little-known loophole, even the best bank to refinance is only required to disclose their Annual Percentage Rate and provide you a Good Faith Estimate; both of which are marketing tools for the bank and little more than a work of fiction for you.
What you need to know is that your bank, even the so-called best bank to refinance, all markup mortgage rates to boost their profits at your expense. The profit your bank garners from overcharging you comes when your home loan is sold by your bank to investors on the secondary mortgage market. Home loans with higher than market mortgage rates bring the bank a premium profit known as Service Release Premium. All banks, even the best bank to refinance, practice overcharging their customers to boost profits.
Hidden Markup & Mortgage Junk Fees
This hidden markup from the bank coupled with the fact that even your best bank to refinance exploits the RESPA loophole to take advantage of their customers is the reason I never recommend refinancing your home loan with a bank. It is possible for you to refinance your home with a wholesale mortgage rate while avoiding this hidden markup, points, and junk fees. Wholesale mortgage rates save the average homeowner $1200 a year or more in lender finance charges alone and you don’t have to be a finance guru to get one.
While it’s true that most brokers will tell you that you can’t get wholesale interest rates, it is possible to find a broker willing to work for a flat loan origination fee. A reasonable fee for loan origination is one percent without taking a kickback from the mortgage lender for marking up your interest rate. All you just have to find the right kind of broker to arrange your next home loan. Many brokers take the same kickback for overcharging you; it just goes by a different name.
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Check out my free Underground Mortgage Refinancing Videos and you’ll discover how easy it is to save thousands of dollars getting the best refinance rates without paying unnecessary markup or lender junk fees.
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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.
