If you’re considering mortgage refinancing and want the best refinance rates without paying lender junk fees you’ll want to avoid several common mortgage mistakes. According to the Secretary of Housing and Urban Development, homeowners in the United States will lose sixteen billion dollars this year alone because they’re paying too much for their home loans. Here are several of my best tips for avoiding common mortgage mistakes on your next refi.
Beware Yield Spread Premium
The rules governing your broker’s commission changed it 2011 for the better if you know how to take advantage of them. Your mortgage broker is not allowed to charge you a loan origination fee and accept lender paid compensation for marking up your interest rate. It may be tempting for some homeowners to minimize their closing costs by allowing the lender to pay the loan origination fee; however, if you do this you’ll be accepting a higher interest rate which will drive up your payment amount for the entire duration of your home loan. You’re getting a 30-year mortgage right? Paying more than you have to in this manner is just one of many common mortgage mistakes.
Shop around for the Best Refinance Rates
Another common mortgage mistake is not shopping around for the best refinance rates. If you refinance with your bank or the first lender you get a Good Faith Estimate from how will you know if you’re betting the lowest refinance rates or paying junk fees?
You can learn more about avoiding common mortgage mistakes like paying junk fees and unnecessary markup by checking out my free Underground Mortgage Refinancing Videos.
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.
