If you’re taking advantage of the Internet to shop for mortgage quotes you’ve probably seen a wide range of fees and mortgage rates from one site to the next. Nothing changes with you from one site to the next why should the mortgage rate quotes you receive be so different?
Here is your online mortgage refinancing survival guide to help you understand Internet mortgage quotes and avoid paying too much for your next home loan.
Online Internet Mortgage Companies
The first thing you should know about the big mortgage websites like Lending Tree is that most of these sites have absolutely nothing to do with mortgage loans. That’s right, despite Lending Tree’s enormous advertising budget and flashy website they have nothing to do with getting you a mortgage loan. What these websites do is collect and sell your information, known as a “mortgage lead” to the various mortgage companies and brokers that participate in their networks.
While using one of these sites is not necessarily a bad thing, sites like Lending Tree take things a step too far. If you read the “licenses and disclosure” page on Lending Tree’s website you’ll discover that if you actually take out a mortgage from one of the lenders in their network you’ll be charged a “computerized loan origination fee” by the lender. This is passing Lending Tree’s fee on to you the homeowner.
The next thing you should know about Internet mortgage quotes is that they all include commission based markup of your mortgage rate. This means you’re paying a higher interest rate than you have to just to give the mortgage company or broker a commission on your loan. This markup of your mortgage rate is called Yield Spread Premium and is a percentage of your loan amount created when the broker locks and closes your home loan with a higher than necessary interest rate. This higher than necessary mortgage rate results in a higher than necessary mortgage payment which can drain thousands of dollars unnecessarily from your budget every year.
How to Refinance with a Wholesale Mortgage Rate
It is possible to refinance your home mortgage paying a flat one percent origination fee without Yield Spread Premium. The techniques described in the free mortgage videos available on this website allow you to take advantage of the wholesale nature of mortgage rates and save thousands of dollars each year. The videos also show you how to read your Good Faith Estimate and HUD-1 Settlement statements to avoid paying lender junk fees. Register today, the mortgage videos are yours free with no obligation.
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.
