If you’re considering mortgage refinancing according to Mortgage News Daily there is no better time than the present.
CURRENT MARKET: The “Best Execution” conventional 30-year fixed mortgage rate is 4.875%. If you are looking to move down to 4.75%, this offer carries higher closing costs but could be worth it to applicants who plan on keeping their new mortgage outstanding for longer than the next 10 years. Some lenders are pricing loans more aggressively because competition is tight, so scattered sightings of 4.75% BestEx are possible, but not on a wide-spread basis. Ask your loan officer to run a break-even analysis on any origination points they might require to cover permanent float down fees. On FHA/VA 30 year fixed “Best Execution” is still 4.75%. 15 year fixed conventional loans are best priced at 4.125%. Five year ARMs are still seen best priced at 3.50% but the ARM market is more stratified and there is more variation in what will be “Best-Execution” depending on your individual scenario.
Recent changes to the laws protecting homeowners from abuse can help you if you know how to take advantage of them. One important thing to know is that these protections do not apply to banks. Banks are exempt from the Real Estate Settlement Procedures Act and are not required to disclose any of their profit margin on your home loan. Mortgage brokers are now prohibited from charging you an origination fee and taking lender paid compensation for marking up your mortgage rate. The broker commission can only come from one or the other…but not both.
What does this mean for you? Find the right mortgage broker to arrange your next home loan with the best refinance rates and you’ll pay as little as one percent for the mortgage origination fee, effectively giving you access to wholesale mortgage rates.
You can learn more about refinancing your home with wholesale rates without paying lender junk fees by checking out my free Underground Mortgage Refinancing Videos.