If you’re searching for low rate home loans and want to avoid hidden markup and junk fees on your next refi there are several things you need to know to avoid overpaying. Did you know that according to the Secretary of Housing and Urban Development your neighbors in the United States will overpay sixteen billion dollars for their mortgage loans this year? And yet, a few minutes from now, I’ll show you how to avoid this trap your neighbors have fallen into. Here are several of my best tips for getting low rate home loans without paying junk fees or unnecessary markup.
Low Rate Home Loans Online
Did you know that all of the mortgage quotes you get online include hidden markup intended to create an extra commission for the person arranging these so-called low rate home loans? This “extra” commission is pocketed on top of the perfectly good loan origination fee you’re already paying the person arranging your mortgage and is the reason most of your neighbors are paying too much. How do you find low rate home loans? While it’s true that the internet can be an excellent resource for comparison shopping, if all of the mortgage quotes you get contain this hidden markup, what good is comparison shopping? (Just one of the mistakes made by your neighbors)
The same is true of the low rate home loans your mortgage broker promises you. The trick to finding the best deal isn’t comparison shopping mortgage quotes until you’re blue in face, it’s finding the right person to give you access to low rate home loans. There are honest, hard-working mortgage brokers out there that don’t take hidden commissions, you just have to find one.
How to Find the Right Mortgage Broker
Before you can find the right person to give you the access you want you’ll need to understand how this hidden markup works. Mortgage fat cats call their hidden commission Yield Spread Premium. Simply put, Yield Spread Premium is a fee, (think kickback) paid to the person arranging your mortgage for locking and closing with a higher than necessary interest rate. Don’t think you can avoid Yield Spread Premium by taking out a mortgage from your bank, they have the same hidden markup with a different name. So how do you avoid this insidious mortgage Yield Spread Premium when shopping for low rate home loans?
We’re back to finding the right person to arrange your home loan. Start by telling potential mortgage brokers that you understand how Yield Spread Premium works and will not accept any offers that include the markup. Offer to pay them a flat origination fee of one percent (which is perfectly reasonable for the broker’s work) and you’ll be well on your way to getting a wholesale mortgage loan.
You can learn more about getting low rate home loans without paying hidden markup or junk fees by checking out my free Underground Mortgage Refinancing Videos.
Here’s a quick taste to get you started on the road to saving thousands of dollars each year with a wholesale mortgage rate.
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.
