If you’ve searching for the best mortgage refinance companies for your next home loan there are several things you need to know to avoid paying unnecessary fees and markup. According to the HUD Secretary, homeowners in the United States will lose sixteen billion dollars this year because of hidden markup and junk fees. Here are several of my most effective tips to help you refinance without falling for hidden markup or junk fees.
Best Mortgage Refinance Companies
How do you find the best mortgage refinance companies for your next home loan? It’s not as hard as you might think and you don’t even have to be a personal finance guru. Rather than focusing on finding the best mortgage refinance companies you’ll be better off focusing your energies on finding the right person to arrange your next home loan. The reason is most that you find online are simply unwilling or unable to negotiate terms. Large companies have too much overhead from their posh office spaces and their expensive sales staff to offer the kind of home loans you’re looking for.
Hidden Mortgage Rate Markup
What you might not know about your best mortgage refinance companies is that they all markup their mortgage rates for a commission. This hidden markup is to collect a fee known as Yield Spread Premium. Any of these quote best mortgage refinance companies that lock and close your home loan with a higher than necessary interest rate collect this kickback from your lender. If you want the lowest possible mortgage rate for your next home loan, your priority needs to be avoiding Yield Spread Premium.
Before you try negotiating with any of these so-called best mortgage refinance companies I recommend that you understand how Yield Spread Premium works. We already know that the person arranging your home loan receives a commission for the hidden markup of your mortgage rate. What you need to know is that this person receives a kickback of one percent of your home loan amount for every .25 percent that they overcharge you and is this hidden markup that drives up your payments unnecessarily.
How to Avoid Yield Spread Premium
You can get wholesale mortgage rates for your next home loan (something you’ll never get from your best mortgage refinance companies) by finding a broker willing to work for a flat origination fee of one percent without taking Yield Spread Premium on your home loan. There are plenty of honest brokers out there willing to give you these terms; you just need to find one. You can start by telling potential mortgage brokers that you understand how Yield Spread Premium works and will not accept any home loan that includes the markup.
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Check out my free Underground Mortgage Refinancing Videos and you’ll discover how easy it is to save thousands of dollars getting the best refinance rates without paying unnecessary markup or lender junk fees.
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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.
