If you’re searching for the best mortgage refinance companies there are several things you’ll want to know before choosing one. Common mortgage mistakes like opting for a no cost refinance offer can rob you of any befit from your new home loan and thousands of dollars of your hard-earned cash. Here is some of my best advice on refinancing your home to help you avoid paying too much for your next refi.
Annual Percentage Rate Definition
The first thing you should know about your upcoming mortgage refinance is that shopping for the best mortgage refinance companies using the Annual Percentage Rate simply doesn’t work. The definition of Annual Percentage Rate is an expression of the total cost of having your home loan including fees expressed as a yearly percentage.
The problem with using the Annual Percentage Rate (APR) to shop for your next home loan is that there are no standards lenders are required to use when calculating APR. This means you’ll never get an apples-to-apples comparison when comparing one mortgage lender to the next using APR. In fact, APR and the Good Faith Estimate it’s based on has become little more than a marketing tool for many lenders. Think of your Good Faith Estimate and Annual Percentage Rate as marketing propaganda intended to trick you into an overpriced home loan.
Refinancing With The Best Mortgage Brokers
It’s no secret that the best mortgage brokers have access to the lowest mortgage refinance rates. They also have a reputation or overcharging their customers with junk fees and unnecessary markup. Find the right broker for your next refi and you’ll not only have access to wholesale mortgage rates but you won’t have to worry about paying lender junk fees.
How do you find the right mortgage broker to arrange your mortgage refinance? I usually recommend finding a local broker that isn’t a mortgage banker or operating their business as a broker bank. What’s a broker bank? When the RESPA laws changed to exclude banks from key disclosure laws many brokers changed their businesses to work like a bank. How’d they do that you ask? Simply by restructuring to fund their mortgage refinance loans with their company’s cash than going through a wholesale lender makes them exempt from nearly every disclosure law on the books, just like your bank.
Beware Bank Refinance Rates
You see, the Banking Lobby spent millions of dollars lobbying Congress to be exempt from the Real Estate Settlement Procedures Act and in the 90s they succeeded. The government has yet to close the loopholes that only require banks to give you that fictitious Annual Percentage Rate on your refi without disclosing their markup or profit margin on your home loan. This is why I never recommend taking out a mortgage refinance loan from your bank. If you’re looking for the best mortgage companies for your next home loan why would you choose one that doesn’t have to play by the rules?
Get Instant Access
You can learn more about finding the best mortgage lenders for your next home loan without paying unnecessary fees or markup by checking out my free Underground Mortgage Refinance Videos.
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