If you’re searching for the best home refinance rates there are several things you need to know to avoid making costly refinancing mistakes. What 90% of your neighbors don’t know when shopping home refinance rates is that the quotes you find online and get from your local mortgage company, bank, even your credit union have been marked up to boost their profits at your expense. If you want the best possible home refinance rates you need avoid this unnecessary markup. Here are several of my best tips for getting home refinance rates that haven’t been marked up to stuff someone else’s pockets with your money.
Finding The Best Home Refinance Rates
You don’t have to be a financial guru to get the best home refinance rates; you just need to know how to recognize junk fees and unnecessary markup. The approach most of your neighbors take to shopping for home refinance rates is to collect as many quotes as possible and go with whichever one is lowest. The problem with this is that all of the quotes you find have hidden markup built into them. Instead of taking the wrong approach like most of your neighbors did by shopping for mortgage quotes it makes more sense to find the right person to get you the best home refinance rates; here’s why.
Wholesale Mortgage Rates Will Save You Thousands
What is a wholesale mortgage rate? Wholesale rates are also known as par mortgage rates and have simply not been marked up for the broker’s commission and won’t cost you discount points. Many brokers will tell you that you can’t get wholesale mortgage rates; what they’re really telling you is that they’re not willing to give you one. Find the right mortgage broker and you’ll not only avoid unnecessary junk fees but you’ll be able to take advantage of the wholesale nature of home refinance rates.
How do you find the right broker for your next home loan? Forget brokers from large national chains and mortgage bankers. These lenders simply have too much overhead from employing an expensive sales staff and working out of posh office spaces. Your best bet for getting a wholesale mortgage rate is to find a local, self-employed broker working from home. These brokers are usually not only hones t and hard-working but willing to negotiate the kind of home refinance rate we’re talking about here.
How do you negotiate a wholesale mortgage rate with your broker? Start by telling potential mortgage brokers that you’ll pay a reasonable loan origination fee of one percent but will not go for any home loan that includes the broker’s commission in the mortgage rate. There are many honest brokers out there willing to work for these terms; you just need to find one licensed in your State. How about junk fees? Most of the junk fees you’ll encounter with our home refinance rate come from the broker.
Anything on your HUD-1 Statement that resembles a broker courier fee, POC or paid outside of closing charges, Yield Spread Premium, excessive processing fees, rate lock fee, administration fee or submission fee should send up red flags and warrant a serious discussion with your loan originator.
You can learn more about finding the right person to get you the best home refinance rates with my free Underground Mortgage Videos.
This short video exposes the mortgage industry’s dirty secret and the reason most of neighbors are paying too much for their mortgage loans.