Are you looking for the lowest interest rate, fees, and payment when refinancing your home mortgage loan? A home mortgage refinance calculator makes it easy to figure out how much your new payment will be; however, it won’t show you hidden markup that results in overpaying thousands of dollars. If you want the lowest payment a home mortgage refinance calculator is a useful tool only if you can avoid this hidden markup and junk fees. Here are several tips to help you get the lowest payment for next home mortgage loan.
How to Use a Home Mortgage Refinance Calculator
Using a home mortgage refinance calculator to evaluate mortgage quotes is simple. Plug in the amount you are refinancing, your mortgage interest rate, and the duration of your home loan and you’ll have your new payment at the click of your mouse. What you should know about this payment amount is that includes markup for a fee known as Yield Spread Premium. This fee is paid by lenders to any loan originator who locks and closes your home loan with a higher than necessary interest rate. This is the markup that no calculator will help you avoid.
Avoiding Hidden Markup of Your Interest Rate
If you want the lowest payment for your next loan before using that home mortgage refinance calculator you need to find quotes that haven’t been marked up for someone’s commission. First of all, don’t get me wrong, home loan originators deserve to be paid for their work like everyone else… and that is what your loan origination fee is for. A reasonable fee to pay for loan origination is one percent of your loan amount assuming the person arranging your fee has not marked up your interest rate for Yield Spread Premium.
How does this hidden markup interest rate for a commission work? For every quarter point that your loan originator marks up your interest rate the lender pays them one percent of your loan amount as this extra commission known as Yield Spread Premium. Your loan originator doubles, even triples their commission with Yield Spread Premium and you get stuck with a monthly payment that is a hundred dollars or more than it should be.
How to Get Wholesale Home Loan Interest Rates
How can you avoid this unnecessary markup of your home loan interest rate? Instead of relying on that home mortgage refinance calculator to tell you if your quote is a good deal you can save yourself thousands of dollars simply by finding the right person to arrange your next home loan. Start by telling potential originators that you’ll pay them a reasonable fee for loan origination but will not accept any mortgage quote includes markup for Yield Spread Premium. Once you’ve got mortgage quotes that haven’t been marked up for Yield Spread Premium you can run them through your home mortgage refinance calculator to determine how much you’ll be saving with a wholesale mortgage rate.
You can learn more about using a home mortgage refinance calculator to score yourself a wholesale home loan interest rate by checking out my free Underground Mortgage Refinancing Videos.
Here’s a quick sample to get you started on the path to a wholesale rate today.
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.
