Are you looking for the best mortgage loan rate to purchase or refinance your existing home loan? If you want the best mortgage loan rate that doesn’t include hidden markup or junk fees like unnecessary points, there are several things you need to know to avoid overpaying. Here are several of my most effective strategies for getting the best mortgage loan rate for your next home loan without overpaying one cent.
Best Mortgage Loan Rate Online
The Internet is a great resource for researching home loan offers; however, there is an abundance of bad advice available online. Take for example, the two percent rule of mortgage refinancing. If you want the best mortgage loan rate you already know that even if your new interest rate isn’t two percent lower than your current rate, you can still save a boatload of cash refinancing your home loan.
What you might not know about the home loan offers you get from your broker or those Internet giant websites like lending tree, is that they all mark up their best mortgage loan rate to collect a hidden commission at your expense. This hidden commission, called Yield Spread Premium by the mortgage fat cats, will be responsible for your neighbors in the United States overpaying sixteen billion dollars this year according to the Secretary of Housing and Urban development.
How to Avoid Hidden Markup & Junk Fees
The good news is that you can avoid paying unnecessary markup and junk fees unlike many of your neighbors. It’s easier than you think to get wholesale mortgage rates and you don’t have to be a finance guru to pull it off. All you need to do to get the best mortgage loan rate around is find the right person to arrange your next home loan. This is a completely different approach than what your neighbors do when shopping for a home loan. They call and click to collect home loan quotes and eventually pick what they think is the best mortgage loan rate; however, this approach yields interest rates that have all been marked up for the hidden commission Yield Spread Premium.
You might thing you can avoid all this hidden markup nonsense by getting the best mortgage loan rate from your bank. While it is true that banks don’t deal in Yield Spread Premium because their home loans are funded with the bank’s money, your bank still marks up their rates for a different reason. Banks make the majority of their profits selling their home loans to investors on the secondary market. The profit they collect by selling home loans with higher than market interest rates is known as Service Release Premium by the banking fat cats. Worse yet, your bank is exempt from the Real Estate Settlement Procedures Act and is not required to disclose any of their markup or profit margin on your home loan.
Wholesale Mortgage Rates
Would you recognize the best mortgage loan rate if you found one? Wholesale mortgage rates are available to savvy homeowners despite what your mortgage broker tells you. What is a wholesale mortgage rate? Also known as a par mortgage rate, it simply means you’re getting the lowest rate available on any given day that doesn’t include hidden markup for Yield Spread Premium or Service Release Premium, and you don’t have to pay points to quality. Wholesale mortgage rates are out there, you just have to find the right person to arrange your next home loan to get one.
You can learn more about getting the best mortgage loan rate without hidden markup or junk fees by checking out my free Underground Mortgage Refinancing Videos.
Here’s a quick sample to get you started securing a wholesale mortgage rate for your next home loan.
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.
