I Need to Find the Best Mortgage Rate

If you’ve been thinking about mortgage refinance but want to avoid paying more than you need to there are steps you can take to make sure you’re getting the best deal. If you’ve been saying to yourself I need to find the best mortgage rate, that’s only half the story when it comes to mortgage refinancing. How good of a deal you’re getting on your mortgage refi actually depends on the fees you’re paying in the process; getting today’s best refinance rates is easy provided you have a decent credit score.

Here’s an article from USNews.com to help you find the best mortgage rate:

Refinancing a mortgage today is a lot like navigating a minefield. One wrong step and your refinance gets blown to pieces. We just closed on a new loan for our primary residence and are in the process of refinancing a loan on an investment property.

Read More:

http://money.usnews.com/money/blogs/my-money/2011/07/07/how-to-be-a-mortgage-refinance-ninja

Once you think you’ve found the best mortgage rate it’s time to focus on fees. You’ll be required to pay closing costs that include a loan origination fee, (there are reasons for avoiding no cost refinance offers but that’s a subject for another day) and various lender fees. The trick is avoiding lender and broker junk fees and a common mortgage mistake made by many homeowners is failing to realize that the fees you pay on your mortgage refinance vary from one lender to the next and are negotiable.

Just because your lender wants to charge you a fee doesn’t mean you have to pay… you can negotiate for better terms, a lower refinance rate, and to pay less in fees at closing.

You can learn more about finding the best mortgage rate without paying unnecessary fees or markup by checking out my free Underground Mortgage Videos.

How To Get The Lowest Mortgage Rate

Are you searching the Internet for the lowest mortgage rate and are not sure which lenders are best when refinancing your home? Do you want to avoid overpaying with a commission based mortgage rate like nearly every one of your neighbors? Here are several of my best mortgage tips to help you get the lowest mortgage rate for your next home loan.

Finding the Lowest Mortgage Rate Online

Getting the lowest mortgage rate when refinancing your home means finding a rate that hasn’t been marked up for a commission for the person arranging your home loan. You’re already paying this person an origination fee for their work on your home loan, why should they get another commission at your expense, especially when it drives up your payment unnecessarily? If you want the lowest mortgage rate for your home loan you’ll need to understand how loan originators are compensated for their work and negotiate a deal that doesn’t include unnecessary markup of your lowest mortgage rate.

Understanding Mortgage Loan Originators

Your loan originator is the person or company arranging your home loan… be it a mortgage company, broker, or banker. Different types of loan originators have advantages and disadvantages when refinancing and if you want the lowest mortgage rate you’ll need to choose the right loan originator for the job. The first kind of loan originator you’ll need to avoid are banks. The simple reason you want to avoid all banks when it comes to your home loan is that banks don’t play by the same rules as other loan originators due to a loophole in the Real Estate Settlement Procedures Act (RESPA).

Did you know that the Banking Lobby in the United States spent millions of dollars sweet talking Congress into changing the laws so that banks don’t have to play by the same rules as other originators? Thanks to this loophole your bank is not required to disclose any of their profit margin or markup on your home loan. If you refinance your home with your bank you’ll get a fictitious rate known as the Annual Percentage Rate based on the bank’s Good Faith Estimate. The Good Faith Estimate is notoriously unreliable because banks and other mortgage lenders lowball their fees to make their loan offers more attractive to homeowners. Banks don’t play by the same rules as other lenders giving them an unfair advantage over homeowners that just don’t know better.

The next type of mortgage originator you need to be aware of is known as a mortgage broker bank. When the Banking Lobby succeeded in having our RESPA laws changed a number of mortgage brokers formed lending institutions known as broker banks that funded their loans with their own money. Any lender that funds loans in this manner is exempt from RESPA and therefore does not have to disclose markup or profit margin just like your bank. Refinancing your home loan with a bank or broker bank will never get you the lowest mortgage rate.

The last type of mortgage originator I’m going to discuss today is the mortgage broker. Many homeowners avoid mortgage brokers entirely because they’ve earned themselves a reputation for ripping people off. For the most part they’ve earned the reputation they deserve because a great number of them have no scruples whatsoever and have business models based on taking advantage of people. This doesn’t mean that you should avoid mortgage brokers entirely when refinancing your home because they do have one redeeming quality: mortgage brokers have access to wholesale mortgage rates. Find the right mortgage broker for the job of originating your home loan and you’ll not only get a wholesale mortgage rate but you’ll avoid paying junk fees in the process.

What Are Wholesale Mortgage Rates?

If you want the lowest mortgage rate for your next home loan you’ll need to understand wholesale mortgage rates. Simply put a wholesale rate is one that doesn’t cost you anything to get and has not been marked up to create an extra commission for the loan originator. Some mortgage rates require that you pay discount points in order to qualify for a specific rate; wholesale mortgage rates do not have this requirement. Wholesale mortgage rates are known in the industry as par mortgage rates. You don’t have to be a financial guru to get a par mortgage rate; you simply have to find the right mortgage broker for the job.

How to find the Right Mortgage Broker

If you’re leery of refinancing your home with a mortgage broker then you’re on the right path to getting the lowest mortgage rate for your home. Local mortgage brokers that do not employ expensive sales staff or have advertising budgets and posh office spaces will be the most likely willing to negotiate the kind of deal you’re looking for when refinancing your home with the lowest mortgage rate. These mortgage brokers are typically self-employed and you may find them working out of their homes. How do you negotiate the kind of deal that gets you a wholesale mortgage rate while avoiding unnecessary fees?

Check out my free Underground Mortgage Refinancing Videos and you’ll get strategies for exploiting little known mortgage refinancing loopholes that save the average homeowner $1200 per year or more.

httpv://www.youtube.com/watch?v=be9md0A0_2c

Here’s a sample of what you’ll get when you register today for my free mortgage videos. This module is about the commission based markup of your mortgage rate that drives your payment up by hundreds of dollars unnecessarily.

Best Mortgage Rates

If you’re thinking about refinancing your home mortgage loan you’ll want the best mortgage rates you can get for the new loan. Did you know that 99% of your neighbors are overpaying for their home loans because they went shopping for the best mortgage rates the wrong way? Here are my favorite tips and tricks to help you get the best mortgage rates when refinancing your home mortgage loan without paying any junk fees or markup.

Getting The Best Mortgage Rates Online

Getting the best mortgage rates on the Internet is trickier than you think. What you don’t know about every mortgage quote you find online or get from your local mortgage company is that the mortgage rates have all been marked up to create an “extra” commission for someone. If you want the best mortgage rates when refinancing your home loan you’ll have to find one that hasn’t been marked up. Why are mortgage rates marked up for this commission? Mortgage lenders pay a kickback for home loans that close with higher than necessary mortgage rates because these home loans bring them premium profits when sold to investors on the secondary mortgage market. Mortgage lenders don’t care that this markup drives up your payment by hundreds of dollars per month unnecessarily; these companies are motivated only by greed and their bottom line. If you want the best mortgage rates for your home loan you need to know that the mortgage lender and broker are not looking out for you; judge every loan offer with a healthy dose of skepticism and you’ll be on your way to actually getting the best mortgage rates.

Mortgage Rate Markup

What is this markup of your mortgage rates that drives your payment up unnecessarily? The fee paid by wholesale lenders for mortgage loans that are locked and closed with higher than necessary mortgage rates is called Yield Spread Premium. Provided you don’t refinance your home with your bank, the person arranging your home loan receives one percent of your loan amount for every .25 percent they markup your mortgage rate. Yield Spread Premium is paid in addition to any fees you’re paying for loan origination to the mortgage company or broker arranging your home loan.

Refinance Mortgage Rates
httpv://www.youtube.com/watch?v=8o2xAWZxdo8
Here’s a quick video about finding the lowest
mortgage rates when refinancing your home loan online.

Before you go saying you’ll just avoid all this Yield Spread Premium nonsense by refinancing with your bank, you should know that while banks don’t collect Yield Spread Premium on their loans they do collect a profit margin known as Service Release Premium when your home loan is sold to investors on the secondary market, just like wholesale lenders. Your bank is also exempt from the Real Estate Settlement Procedures Act, meaning they don’t have to disclose their profit margin or markup on your home loan. Banks markup their mortgage rates just like mortgage brokers because they make a premium profit selling your home loan later on. Your bank will never tell you they’re doing this because all they’re required to give you prior to closing is a Good Faith Estimate and Annual Percentage rate, both of which are based on low-balled fees given in “good-faith.” You’ll never get the best mortgage rates refinancing your home loan with your bank.

How to Get the Best Mortgage Rates

Getting the best mortgage rates when refinancing your home isn’t as difficult as you think; you don’t have to be a financial guru to get the best mortgage rates, you just have to find the right person to arrange your loan. Shopping for a mortgage loan isn’t like shopping for a new television or kitchen appliance; comparing mortgage quotes from dozens of lenders will only get you the best of the worst home loans available and this is why most of your neighbors pay too much for their mortgage loans.

Finding the right person to arrange your next home loan means finding an independent mortgage broker willing to work for a flat origination fee without marking up your mortgage rate for Yield Spread Premium. Finding the right mortgage broker can be tricky because many brokers are unwilling or unable to negotiate the kind of deal that doesn’t include Yield Spread Premium because of their overhead costs. Mortgage brokers working out of posh office spaces that employ expensive sales staff will generally not agree to home loans that do not include Yield Spread Premium.

How do you find the right mortgage broker to give you the best mortgage rates? Remember that only mortgage brokers have access to wholesale mortgage rates and this is your goal for refinancing with the best mortgage rates. The best mortgage rates on any given day are going to be as close to “par” as you can get them. Par mortgage rates is a term meaning you don’t have to pay discount points to qualify for a specific mortgage rate and of course that the mortgage rate does not create Yield Spread Premium for the mortgage broker arranging your loan. A discount point is the equivalent of one percent of your loan amount and is a fee due at closing. Mortgage rates are still very low and the benefits of paying discount points are far less than they used to be in the 1980s when mortgage rates were much higher than they are today. In most cases you will want to avoid paying discount points whenever possible.

Getting back to finding the right mortgage broker to arrange your home loan with a par mortgage rate, you want to look for the smaller, self-employed mortgage brokers that don’t have expensive overhead therefore avoiding junk fees and mortgage rate markup. Start by telling potential mortgage brokers that you understand how Yield Spread Premium works and will not take a home loan that includes the markup. On the subject of junk fees there are several closing costs that you’ll want to avoid when refinancing your home loan. Junk fees are the subject of my Underground Mortgage Videos; however, finding certain fees in your loan documents is a dead giveaway that you’re dealing with a dishonest mortgage broker. The number one red flag you need to keep an eye out for when refinancing your home is the mortgage rate lock fee. This is a classic example of a mortgage junk fee that serves no purpose other than boosting your mortgage broker’s profit. Mortgage lenders do not charge rate lock fees. If your mortgage broker claims there are rate lock fees you can be 100% certain you are dealing with a dishonest mortgage broke and need to find someone else to arrange your home loan.

You can learn more about avoiding mortgage junk fees and getting the best mortgage rates when refinancing your home loan by checking out my free underground mortgage refinancing videos.

httpv://www.youtube.com/watch?v=be9md0A0_2c

Here’s a sample of what you’ll get when you register today. This video is about your mortgage lender’s dirty secret when it comes to marking up your mortgage rate. These underground mortgage videos are yours free and stream to you online with nothing to download to your home computer.

Today’s Fixed Mortgage Rate

If you’re in the market to refinance your home with a fixed rate mortgage there are several things you’ll want to know to avoid overpaying. Most people focus on finding the lowest mortgage rates and often overlook junk fees and markup when refinancing. Here’s what you need to know about Today’s Fixed Mortgage Rate when refinancing your home to avoid paying too much.

Today’s Fixed Mortgage Rate

You might have come here using a search engine looking for today’s lowest fixed mortgage rates. While it’s easy to collect fixed mortgage rate quotes using the Internet, what you might not know is that ALL of the quotes you find online and out of the phone book have been marked up to create a commission for someone. No big deal…mortgage brokers gotta eat too right? Actually, that’s why you pay a loan origination fee. The person arranging your home loan should get paid for their work; however, you should draw the line when the mortgage broker takes a SECOND commission at your expense.

That’s right, many mortgage brokers structure their loans to double, often triple their commission at your expense by marking up your mortgage rate without telling you. Sure, if you’re dealing with a mortgage broker they have to disclose the fee they’re receiving for this markup but most have clever ways of disguising what they’ve done. Your mortgage broker might even tell you not to worry about this fee because the lender’s paying it and it’s not coming out of your pocket. Banks on the other hand are exempt from disclosure rules and don’t have to tell you how much money they’re making off your loan…reason enough to avoid banks altogether when refinancing your home.

How to Get the Best Fixed Mortgage Rates

In order to get the lowest fixed mortgage rates when refinancing your home you’ll need to know more about how loan originators are compensated. Your mortgage loan originator is simply the person arranging your home loan…it doesn’t matter if you are refinancing or if this is a new mortgage to purchase your home, they all generate the same fees and commissions. The first fee you need to be concerned with is the loan origination fee. Often called origination points, this is the fee paid to the mortgage company or broker arranging your loan and should not be more than one percent of your loan amount. The second way mortgage companies and brokers are compensated for their work is the fee called Yield Spread Premium.

What You Need to Know About Yield Spread Premium

Yield Spread Premium is simply a dollar amount created when the loan originator locks and closes your home loan with a higher than necessary mortgage rate. Your mortgage broker gets this commission of one point for every .25% they markup your interest rate. Whenever you hear someone talking about points remember that a “point” is one percent of your loan amount. You will rarely find Yield Spread Premium on a Good Faith Estimate because most mortgage companies and brokers lowball fees on the Good Faith Estimate to make their loan offers seem more attractive. This is why the Annual Percentage Rate or APR is worthless for mortgage comparison shopping…it’s based on lowball figures and is little more than marketing propaganda.

How to Shop for a Mortgage Loan

Shopping for a mortgage loan isn’t like shopping for a household appliance. If you collect mortgage quotes online and from local mortgage companies and pick the lowest rate you’ll wind up with the best of the worst loan offers. Instead of shopping for the best or lowest mortgage offer it makes more sense to find the right person, an honest mortgage broker willing to work for a one percent origination fee without marking up your interest rate to arrange your next home loan. How do you find this person? Start by telling the mortgage companies and brokers you contact that you understand Yield Spread Premium and will not accept any home loan that includes this markup. Once you find a mortgage broker willing to accept your terms you’ll still need to know how to use your loan documents to keep this person honest, but you’re on the right track.

You can learn more about getting today’s lowest fixed mortgage rate without paying unnecessary markup or junk fees by checking out my free Underground Mortgage Refinancing Videos.

httpv://www.youtube.com/watch?v=be9md0A0_2c

Here’s a sample of what you’ll get when you register today.

The Ugly Truth About Bank Mortgage Rates

If you’re in the market for a new mortgage loan or are thinking about refinancing your existing home loan, you might be considering taking out the mortgage loan from your bank. While it’s true that bank mortgages are a convenient way of taking out a home loan, if you want the best mortgage rates and lowest mortgage payment there is a very compelling reason for avoiding banks. Here are my best mortgage tips to help you avoid paying too much for your next home mortgage loan.

Best Mortgage Rates

Shopping for a mortgage loan is a confusing process for many homeowners. Most people just compare mortgage rates from their bank with a couple mortgage companies out of the phone book thinking that the biggest banks and lenders offer better deals. This might be true for products from the Wal-Marts of the world, when it comes to mortgage loans this mindset will cause you to overpay thousands of dollars.

Mortgage rates, especially those from your bank do not work like other retail purchases you make, buying a plasma television for example. You would think Bank of America, Wachovia Bank, and Wells Fargo Mortgage would offer discount mortgage rates because they are high volume lenders; however, this is simply not the case.

Home mortgage rates, it doesn’t matter if they’re from a wholesale lender or any bank, are not like other consumer products. There is no volume discount when it comes to home loans so it makes no difference if you take out a home loan from a mortgage giant like Wells Fargo Mortgage or the mom and pop mortgage company in a small town. This doesn’t mean that both types of lenders, large corporate giants and small time mortgage brokers alike, don’t have overhead costs that include marketing, office spaces, and the occasional company hummer. (Trust me on this point…you do not want to work with any mortgage company or broker you see tooling around in a hummer with their face and logo splattered all over it.)

Mortgage Rates Are Investment Driven

The mortgage markets do not behave like other retail markets when it comes to supply and demand. When demand is low mortgage rates typically go up…unlike supply and demand of physical products. This is because mortgage rates typically follow the yield, which is return on investment, in the bond markets. When the bond yields are low, which usually corresponds to bad economic news like the current recession, mortgage rates go down. When the bond yields are high mortgage rates go up because the demand of investors affects long term interest rates like what you pay on a 30 year fixed rate mortgage. It’s next to impossible to try and time the market when it comes to mortgage rates. Your energies are best spent shopping for the right person to arrange your next home loan rather than trying to predict when mortgage rates are going up or down.

What You Need to Know About Bank Mortgage Rates

Banks are not wholesale lenders nor do they offer their customers wholesale mortgage rates. Bank mortgage rates are set by the bank and if you’re willing to pay for a bank mortgage loan you’re welcome to take their rate or leave it…no negotiating. You would think that your bank has to be competitive with wholesale lenders in order to remain competitive in the marketplace; however, that’s not how banks operate when it comes to mortgage loans. Banks rely on the fact that most homeowners don’t understand how mortgage rates work to drive their profits, taking advantage of most people’s lack of knowledge. Most people fall victim to the notion that bigger is better when it comes to mortgage loans, a notion that results in overpaying thousands of dollars more often than not.

One of the biggest problems with bank originated mortgage loans is that your bank is exempt from the Real Estate Settlement Procedures Act and is not required to disclose any of their profit margin or markup on your loan. All the bank is required to disclose to you is an Annual Percentage Rate that they base on a Good Faith Estimate that has all of the fees low-balled to make the overpriced home loan seem more attractive.

Banks don’t offer wholesale mortgage rates to their customers because the bank makes most of their profit when your loan is sold to investors on the secondary market. Your bank may continue to service the loan after they sell it meaning you’ll never know the fast one your bank pulled on you. The profit your bank makes from selling your loan with a higher than market mortgage rate is called Service Release Premium. If you never shop from a wholesale mortgage source such as an honest mortgage broker you’ll never know how much the bank is overcharging for their mortgage loans.

If you want the lowest possible mortgage rate to purchase or refinance your existing home loan you’ll need to get a wholesale mortgage rate which is also known as a par mortgage rate. This means you can’t shop for the “best mortgage” lender or bank, you’ll have to shop for the right person to arrange your next home loan to get a wholesale mortgage rate.

You can learn more about finding the right person to arrange your next home loan so you can take advantage of wholesale mortgage rates while avoiding unnecessary mortgage junk fees by registering for my free underground mortgage refinancing videos.

httpv://www.youtube.com/watch?v=be9md0A0_2c

Here’s a sample of what you’ll get when you sign up today.