If you’re a New Yorker considering mortgage refinancing there are several things you’ll want to know to avoid paying too much. There are a number of junk fees that result in overpaying thousands of dollars for your New York Refinance. Here are several tips to help you avoid junk fees and markup when refinancing your home.
New York Refinance Tips
The first thing you’ll need to know about the mortgage quotes you receive is that nearly all of them have been marked up to create a commission for the person arranging the loan or to create a premium when your loan is sold to investors on the secondary mortgage market. There’s nothing wrong with the mortgage broker earning a commission on your New York refinance; however, you shouldn’t have to pay this fee every year that you keep the loan. The loan origination fee you’ll pay at closing is more than ample compensation for the mortgage broker and one percent is a reasonable fee to pay for their work.
What about refinancing with a bank in New York? The problem with banks is that they mark up mortgage rates to create a premium for the bank when your loan is sold. Thanks to a loophole in the Real Estate Settlement Procedures Act your bank is not required to disclose this markup or their profit margins in the State of New York. This is why you should never refinance your home loan with a bank in the State of New York. Mortgage brokers aren’t much better but they do have one redeeming quality and if you find the right broker for your New York refinance you’ll save thousands of dollars… here’s how.
Mortgage Brokers Get Par Rates
New York mortgage brokers have access to par mortgage rates, something you’ll never get from your bank. What’s a par mortgage rate? Simply put it’s an interest rate that doesn’t cost you a fee to get and does not create a bonus for the mortgage broker arranging your loan. Mortgage lenders pay a bonus to mortgage brokers that lock and close your home loan with above market interest rates. If you accept a higher than market rate for your New York Refinance your mortgage payment will cost you $1000 per year more than it needs to for the average New Yorker. That’s right; this commission based markup of your mortgage rate will cost you $1000 per year or more on your next home loan. You’re probably paying this markup on your existing home loan and just didn’t know what your mortgage broker did at the time. According to the government this unnecessary markup of your mortgage rate will cost New Yorkers sixteen billion dollars this year alone.
You Can Get a Par Mortgage Rate
You don’t have to be a financial genius to walk away from the closing table with a par mortgage rate. You just need to find the right mortgage broker to arrange your home loan. The right mortgage broker for the job probably won’t have a full page ad in the phone book. Mortgage brokers with expensive office spaces and advertising budgets will most likely be unwilling to negotiate the kind of deal you’re looking for with your New York refinance loan. Find a self-employed mortgage broker with no overhead and you’ll be able to easily negotiate the deal I’ve described today.
You can learn more about avoiding junk fees and markup of your New York Refinance by registering for my Underground Mortgage Videos. Register today and you’ll get immediate access to the online videos and a list of self-employed New York mortgage brokers without downloading anything to your Mac or PC.