If you’re looking at SunTrust Mortgage Rates for your next home loan there are several things you’ll want to know in order to avoid paying unnecessary markup and fees. Everyone wants a low rate for their home loan; however, paying junk fees can quickly sour the most attractive deals you find online. Here are several of my best mortgage tips to help you make an informed decision if SunTrust mortgage rates are right for your next home loan.
Can You Trust SunTrust Mortgage Rates?
SunTrust Mortgage is a fully-owned subsidiary of SunTrust Bank. Operating primarily out of the South-Eastern part of the country, they have offices from Florida to Washington DC. The mortgage division of SunTrust bank originates loans in 49 States but services loans in all 50 States. SunTrust mortgage can be found on the web at www.suntrustmortgage.com or by phone at 800.632.7928.
Like many of the retail loans offered by big banks, one of the undisclosed fees you should know about is called Service Release Premium. The problem with bank originated mortgage loans is that many of the laws protecting homeowners in your State do not apply because banks are regulated by the Federal Government and are therefore exempt from your State’s consumer protection laws. The problem with Federal mortgage regulation as it pertains to bank originated home loans is that that the Real Estate Settlement Procedures Act (RESPA) allows banks to generate extra revenue by jacking up your interest rate without telling you. Unless you compare the banks interest rates to wholesale mortgage rates you’ll never know how much the bank could be overcharging you.
Bank Mortgage Loan Fees
Service Release Premium (SRP) is the revenue generated for the bank when they charge you higher than market interest rates. SunTrust mortgage rates are no different because they are bank originated and therefore exempt from RESPA and your State’s consumer protection laws. Banks generate this extra revenue (SRP) by selling your home loan with a higher than market interest rate to investors on the secondary market. There is protection built into the RESPA laws that requires mortgage brokers to disclose any fees they collect for marking up your mortgage loan; however, thanks to the Banking Lobby in the United States, SunTrust mortgage rates are exempt from this legislation.
Because of the loophole in consumer protection I recommend that people avoid banks and stick with local mortgage brokers where you’ll get full disclosure in black and white, especially with the 2010 RESPA law changes. As of 2010 mortgage brokers are required to disclose any fees they receive from the lender alongside any origination fee they charge you. This isn’t to say that many shady mortgage brokers will try and explain this fee away as insignificant because it’s being paid by the lender; however, after reading this article you’ll know better and will be able to avoid these shady brokers.
Wholesale Mortgage Rates
It is possible to get a wholesale mortgage rate for your home by finding the right broker. You can pay a one percent origination fee at closing and walk away with what’s known as a Par mortgage rate without paying points or junk fees. SunTrust mortgage rates are not par for reasons that we previously discussed. Banks simply do not offer their customers wholesale rates. Getting par mortgage rates for yourself is not as difficult as you might think; you don’t have to be a personal finance guru to pull it off, you simply need to find the right mortgage broker for the job.
SunTrust Mortgage Complaints
According to the Better Business Bureau, the BBB received a total of 199 complaints about SunTrust mortgage rates during a recent 36 month reporting period. Of the 199 complaints listed 95 were resolved last year. Do BBB ratings mean anything or are they little more than a form of commercial advertising? Complaints or not, the bottom line for getting the lowest possible mortgage is to find the right mortgage broker, not simply hope that SunTrust mortgage rates will give you a good deal.
You can learn more about SunTrust mortgage rates and getting a wholesale rate for your next home loan by checking out my free Underground Mortgage Videos.
Here’s a sample of what you’ll get for free today. This video shows why almost all of your neighbors pay too much for their home loans.