If you’re considering mortgage refinancing you’re probably on the Internet searching for the best mortgage rates and wondering where to find them. What makes a mortgage rate good? It’s the lowest one out there right?
Finding the lowest rate and getting the lowest mortgage rates are two entirely different things. Here are several tips to help you get the best mortgage rates and save thousands of dollars in the process.
Finding the Best Mortgage Rates
The Internet is an excellent tool for comparing mortgage rates; however, most homeowners shopping for a mortgage on the Internet today are simply comparing the best of the worst mortgage rates available. Why is this?
The mortgage rate quotes you receive online almost always include commission based markup. This commission is a fee paid by the lender to your mortgage broker for the sole purpose of marking up your mortgage rate. Want the best mortgage rates available when refinancing? You’ll have to find a broker willing to work for you for a flat origination fee instead of marking up your mortgage rate.
How to Refinance With the Best Mortgage Rates
Finding the lowest mortgage rate when refinancing is easier than you think; you’re not actually shopping for a rate quote when refinancing, you’re looking for the right person to arrange your loan. The ideal mortgage broker for the job will be self-employed, even working out of their home. Are you crazy? Trust my mortgage loan to a home-bound shut in of a mortgage broker without a posh office or expensive sales staff? Oh wait a minute…you might be on to something here…
That’s right…the ideal mortgage broker working out of their home is going to be much more willing to negotiate with you over fees and their commission…one that will not include marking up your mortgage rate for a commission. If you follow the system outlined in the free mortgage videos on this website you’ll be able to refinance your home paying a flat origination fee of one percent and no junk fees.
Mortgage Yield Spread
So what is this commission based markup and how does it work? Simply put, your broker can receive a commission from the lender for locking and closing your loan with a higher than market mortgage rate. This percentage of your loan amounted created when you agree to pay more than necessary is called Yield Spread Premium and avoiding it needs to be the number one priority when refinancing your home loan. Register for the fee mortgage video guide on this website today and you’ll be on the path to saving thousands of dollars every year that you have a mortgage loan.