Searching the web for mortgage rate quotes hoping to grab one with the lowest interest rate without paying junk fees or markup? There are a few things you need to know about the mortgage rate quotes you find online if you’d like to avoid paying too much. Here is one of my best tips to help you find the lowest mortgage rate quotes without paying unnecessary markup or junk fees.
Mortgage Rate Quotes Online
Refinancing your home loan is no different than any other purchase you’ll make; there are people lurking at every corner trying to make a buck at your expense. Home loans in today’s market are retail products not unlike kitchen appliances. There’s always someone in the middle marking that Kenmore appliance up to get a commission. This normally isn’t a problem as retail markup is a fact a life; however, the problem is that you’re already paying the person arranging your home loan a perfectly reasonable origination fee for their work…AND they’re helping themselves to an “extra” commission at your expense.
What am I talking about today? It’s a subject that makes most home loan originators hot under the collar and with good reason. This unscrupulous markup of your mortgage rate quotes can double, even triple their commission on your home loan. Here’s how this scandalous robbery works.
Mortgage Rate Quotes & Yield Spread Premium
The markup I’m discussing today applies to brokers. Banks also markup up their mortgage rates for different reasons and thanks to a loophole in the Real Estate Settlement Procedures Act your bank isn’t required to disclose markup or profit margin on your loan. It makes sense not to get mortgage rate quotes from a lender that doesn’t have to play by the rules right? This is why I recommend avoiding banks when it comes to shopping for mortgage rate quotes to purchase or refinance your home.
What is Yield Spread Premium? Simply put Yield Spread Premium is a commission paid by lenders to loan originators who lock and close their mortgage rate quotes with a higher than necessary interest rate. What do I mean by higher than necessary? The lender behind your home loan has an interest rate they will approve your for on any given day. Both your lender and broker know what this figure is; however, the broker marks up your interest rate based on what they think you and other homeowners will overpay to get this second commission from the lender. That’s right, for every .25% that you agree to overpay for your next home loan the broker pockets an additional one percent of your home loan amount form the lender…at your expense I might add.
This unnecessary markup of your mortgage rate quotes drives up your payments and leaves you with less cash at the end of the month while your broker laughs all the way to the bank. There is good news for you here today; you can avoid this unnecessary markup of your mortgage rate quotes and walk away from the table with a wholesale interest rate once you find the right broker to arrange your next home loan. There are honest, hardworking brokers out there that don’t take advantage of their customers by marking up their mortgage rate quotes and lacing them with junk fees. You just need to know where to find one.
You can learn more about getting mortgage rate quotes that don’t include unnecessary markup or junk fees by checking out my free Underground Mortgage Refinancing Videos.
Here’s a quick sample to get you started uncovering your broker’s dirty secret so you’ll keep more of your hard earned cash after paying your home loan.