How can you get the lowest possible refi rates without paying junk fees and hidden markup? Should you comparison shop good faith estimates into the wee hours of the morning or focus your energies elsewhere to avoid overpaying like many of your neighbors? Here are several of my best tips for getting the lowest refi rates and not overpay your broker or lender.
Home Refi Rates & Hidden Markup
Did you know that all of the good faith estimates you get from your bank or lender include hidden markup of one kind or another to boost profit for the person arranging your loan at your expense? It doesn’t matter if the person arranging your mortgage works for your bank, is a broker or is one of those giant web sites like Lending Tree, they all markup your best mortgage refi rates for fun and profit.
Many of your neighbors choose mortgage refi rates from their bank for convenience and because of effective marketing by the bank. The problem with bank originated mortgage loans is that banks simply do not offer wholesale refi rates to their customers. Your bank makes the majority of their profits by selling your home loan to investors on the secondary market. The bank knows that home loans with higher than necessary mortgage rates bring them a premium profit; also, because your bank is exempt from the Real Estate Settlement Procedures Act (RESPA) they are not required to disclose their profit on your home loan or how much they’ve marked up your home loan.
Beware Mortgage Broker Markup
Brokers aren’t much better than banks when it comes to marking up mortgage interest rates. The difference is that brokers are not exempt from RESPA laws and are required to disclose the fee they receive for marking up your home loan along with their origination fee. This fee the broker gets for marking up up your home loan is called Yield Spread Premium and once you know about it you can avoid paying for it. Simply put, mortgage refi rates that don’t include markup for Yield Spread Premium or need points paid at closing are wholesale, or par mortgage rates.
How to Get Wholesale Refi Rates
The good news since you’ve found my site is that you can get wholesale refi rates and save as much as $1200 or more each year that you’re paying on the home loan. You can get started finding wholesale mortgage rates for yourself by changing your mindset when shopping for a new home loan. Instead of comparison shopping mortgage refi rates trying to find the best deal focus your energy on finding the right person to arrange your next home loan. Start by telling potential brokers that you understand Yield Spread Premium and will not accept any home loan that include the markup. Offer to pay a flat origination fee of one percent, which is more than reasonable, and you’ll be well on your way to saving thousands of dollars on your next home loan.
You can learn more about getting wholesale mortgage refi rates for your next home loan while avoiding junk fees by checking out me free Underground Mortgage Refinancing Videos.
Heres a quick sample to get you started by exposing one of your lender’s dirty secrets that according to the Secretary of Housing and Urban Development will be responsible for fleecing American homeowners out of Sixteen Billion dollars this year alone.