If you are the in the process of refinancing your home mortgage loan, doing your homework before applying for a new mortgage will help you avoid costly mistakes. There are number ways to overpay for a new mortgage loan; the most common is unknowingly paying Yield Spread Premium with your mortgage interest rate. Yield Spread Premium is the retail markup of your mortgage interest rate by the Mortgage Company or broker originating your loan.
Your Mortgage Makeover – Avoid Yield Spread Premium
Yield Spread Premium Results in paying thousands of dollars in unnecessary interest and only serves to boost the commission of your loan originator. Another garbage fee you need to be aware of when refinancing is the computerized loan origination fee charged by many mortgage sites on the Internet. This is a fee paid to these websites for collecting your contact information. One well known mortgage site charges as much as $1,300 for their part in “facilitating” your mortgage loan. You can avoid these computerized loan origination fees by carefully reading the licenses and disclosure statements found on the mortgage site before entering your contact information.
Your Mortgage Makeover – Comparison Shop with the Good Faith Estimate
Comparison shopping with the Good Faith Estimate will provide you a better picture as to which loan offer is best suited to your needs. Many people tell you to use the Annual Percentage Rate or APR when shopping for a mortgage; however, the APR does not give you enough information to make an informed decision as to which loan is best for you. You can learn more about your mortgage options, including expensive mistakes to avoid with our free mortgage makeover video tutorial.