Are you in the market to refinance your home mortgage and are searching for today’s mortgage rates? Before you do anything there are several things you need to know about the mortgage rate quotes you receive.
Things are not as bad as you have been hearing in the news; however, it is very easy to overpay when refinancing your mortgage. Almost every mortgage quote you come across has someone’s commission built into it. If you’re looking for today’s real mortgage rates for refinancing your home loan here are several tips to help you get a good deal.
Today’s Mortgage Rates Refinancing
If you’re new to this business of mortgage refinancing, the process isn’t much different from what you went through when you purchased your home. You’ll need to find someone to arrange your mortgage for you, usually a mortgage broker that will charge you a fee for their services. Many homeowners think they can skip the middleman by going to their bank for a mortgage loan; however, what the bank isn’t obligated to tell you thanks to a loophole in the Real Estate Settlement Procedures Act is that they are charging you the same markup that most mortgage brokers charge, and probably even more.
How to Find the Right Mortgage Broker
If you want the best deal for your next mortgage loan you’ll need to find a mortgage broker to arrange the loan for you, and not just any broker. Because mortgage brokers work for a commission you don’t want the mortgage broker with the posh office and company hummer. I mean really, how do you think they’re paying for all that bling? They pay for it by overcharging their customer’s mortgage rate…but more on that later.
If you want the best deal the right mortgage broker for your job is a small time self-employed professional, even one working out of their home. These mortgage brokers don’t have the overhead that comes with posh offices and expensive sales staff…not to mention the company hummer plastered with their logo and website.
Mortgage Junk to Avoid
Why do the majority of people overpay when refinancing their mortgages? Simply because they don’t understand how the broker is paid and think that if the lender is paying the fee it’s not coming out of their pocket. Many brokers brag about the fact that their compensation is coming from the lender and even waive their origination fee when refinancing…if anyone who works for a commission starts waiving fees pay very close attention to what they’re shoveling.
What you need to know is not the fact that the mortgage lender is paying this fee for you but why they are paying a fee. Lenders reward mortgage brokers that lock and close loans with above market mortgage rates. If your mortgage broker is receiving a fee from the lender when refinancing it’s because you’re paying a higher mortgage rate than you need to, not that your broker is the “best in the business.” What a load of crap…
It is possible to refinance your home mortgage with a wholesale mortgage rate paying only a one percent origination fee to the mortgage broker. You can find honest mortgage brokers licensed to work in your state that do not mark up mortgage rates for a commission.
You can learn more about refinancing your home mortgage without paying too much by checking out my Underground Mortgage Videos.