If you’re searching the Internet for free refinancing information you probably already know that there’s a lot of bad mortgage advice on the web. Everyone with a website is a self-proclaimed mortgage refinancing expert claiming that they have the lowest rates and fees. The problem is that many people, including almost all of your neighbors, wouldn’t know a good mortgage deal if it came and sat in their lap. First of all, I’m not here today to sell you a mortgage loan; the free refinancing information on this site will show you how to recognize a good mortgage deal when you find one. Here are my best mortgage refinancing tips to help you get a great deal when refinancing your home loan without paying unnecessary markup or junk fees.
Free Refinancing Information Online
There are tons of mortgage refinancing resources available on the Internet and an equal amount of bad mortgage advice. One of the more famous and equally bone-headed tidbits of bad advice you’ll encounter is the so called two percent rule of mortgage refinancing. People still quote the two percent rule when asking if it makes sense to refinance their mortgage loans. Simply put the two percent rule of mortgage refinancing states that you should not refinance your home loan unless your new mortgage rate is at least two percent lower than the mortgage rate you’ll get from refinancing.
Compare Mortgage Refinance Rates
Rather than relying on this old chestnut of bad mortgage advice it makes more sense to evaluate your decision to refinance based on how much it will cost you and how long it will take to recoup your expenses. Keep in mind that not everyone refinances their homes to get a lower payment. If you’re the market to consolidate bills or borrow cash against your home equity you could wind up with a higher mortgage rate and payment than you have now; however, it could still make good sense to refinance in your situation. If you’re in market for a new home loan with a lower mortgage rate and payment you’ll want to weigh your options based on the cost/savings of a new mortgage loan.
Every mortgage loan has closing costs that you’ll have to pay…and some more than others. These closing costs include fees charged by the underwriter, origination fees charged by the broker, various administrative fees and any unnecessary junk fees you unknowingly agree to pay. (Check out the free mortgage videos available on this website to find out more about avoiding these unnecessary junk fees) You can easily calculate how long it will take you to recoup your closing costs on the new mortgage by dividing your total expenses from refinancing by how much lower your new mortgage payment will be. This will tell you the number of months it will take to recoup your closing costs from refinancing…if the timeframe is acceptable to you then it makes sense to refinance the mortgage in your situation.
How to Avoid Mortgage Junk Fees & Unnecessary Markup
There are a number of ways your neighbors overpay for their mortgage loans. The most common is also the least known…a fee paid to your loan originator known as Yield Spread Premium. The person arranging your home loan is called the loan originator and mortgage lenders pay this person the fee known as Yield Spread Premium for locking and closing your home loan with a higher than necessary mortgage rate. This unnecessary markup of your mortgage rate results in a higher than necessary mortgage rate and according to the Secretary of Housing and Urban Development will result in homeowners in the United States overpaying over sixteen billion dollars this year alone.
There are a number of other mortgage junk fees your neighbors agreed to pay that are also the reason they pay too much for their mortgage loans. These junk fees include paying too much for the mortgage broker origination fee as well as agreeing to other junk fees like mortgage rate lock fees, broker courier fees, and excessive loan processing and administrative fees.
You can find out how to avoid all of these junk fees including the unnecessary markup of your mortgage rate for a commission by checking out the free refinancing information in my Underground Mortgage Videos.
Here’s a sample of what you’ll get when you register today. These mortgage refinancing videos are yours free with nothing to buy later on and no obligation.