If you’re considering refinancing your home mortgage loan this year you might be searching the web for the best mortgage deals. Problem is will you recognize a good mortgage deal when you find one? What makes on mortgage deal better than another when refinancing your home loan? Here are some of my best mortgage tips to help you filter through all of the mortgage garbage out there and find the best mortgage deals for your next home loan.
Best Mortgage Deals Online
The problem with refinancing your home loan is that nearly everyone you’ll encounter in the process is simply trying to make a buck at your expense. Forget all crap about trying to help people, mortgage brokers and lenders and all about making money, and they’ll do it at your expense if you let them. How do you recognize the best mortgage deals when you find them? You’ll first need to know what makes a mortgage a good deal.
It’s going to cost you to refinance your home mortgage loan, there’s no getting around that. Origination fees, points, and closing costs are all facts of life for homeowners. What you don’t want to pay is the unnecessary markup of your mortgage rate and garbage fees that 95% of your neighbors paid when refinancing their home loans. Did you know that according to the Secretary of Housing and Urban Development homeowners in the United States will overpay sixteen billion dollars in unnecessary markup and junk fees this year alone? Don’t become a part of this statistic…the advice found in this article alone could save you as much as $1200 on your next mortgage loan.
Unnecessary Mortgage Rate Markup
What is this unnecessary markup of your mortgage rate that I’m talking about? I am of course referring to Yield Spread Premium. Don’t worry if you’ve never heard of it, chances are most of your neighbors haven’t heard of it either and we already know how much money they’re throwing away every year. What is Yield Spread Premium? Simply put it is the markup of your mortgage rate for a commission from the lender and makes most mortgage rates “retail” in nature. I call the markup unnecessary because you’re already paying the person a perfectly reasonable origination free for arranging your home loan. By marking up your mortgage rate for the second commission known as Yield Spread Premium this person is also driving up your monthly payment unnecessarily taking money right out of your pocket.
How to Avoid Yield Spread Premium
How does all this talk about Yield Spread Premium help you find the best mortgage deals? By learning how to avoid Yield Spread Premium you’re able to take advantage of wholesale mortgage rates and avoid junk fees saving yourself thousands of dollars every year that you’re paying on a mortgage loan. The good news is that you don’t have to be a personal finance guru to pull this off…all the tools you need to refinance your home with a wholesale mortgage rate are freely available on this website.
What’s the secret to getting a wholesale mortgage rate? Do you need to burn the midnight oil screening mortgage offers till you can’t see straight? The secret to getting a wholesale mortgage rate is simply find the right person to arrange your next home loan without taking Yield Spread Premium or charging you junk fees. Sounds hard right? It’s actually easier than you think. Start with local mortgage brokers and explain to them that you understand how Yield Spread Premium works and will not accept any mortgage rate that includes the markup. Offer to pay a flat but reasonable origination fee of one percent for their part in arranging your home loan.
What about your bank you ask? Should you try negotiation a wholesale mortgage rate from your bank? While it’s true that banks do not collect Yield Spread Premium on their home loans because the mortgage loan is funded with the banks money, banks simply do not offer their customers wholesale mortgage rates because of the profit margins they collect from selling loans they close with higher than market mortgage rates. Bottom line is that you’ll never get the best mortgage deals refinancing your home with a bank or credit union.
You can learn more about refinancing your home with a wholesale mortgage rate without paying junk fees by checking out my free Underground Mortgage Videos.
Here’s a sample of my free videos…this one shows you how lenders reward mortgage brokers for closing home loans with higher mortgage rates and how you can avoid this unnecessary markup on your next mortgage loan.