6 Reasons You’re Not Getting Today’s Best Refinance Rates

Are you shopping for the best refinance rates and are disappointed to find lenders aren’t offering you their advertised mortgage rates? If you’re not qualifying for today’s best refinance rates the likely culprit is you credit score. Here are six problems areas on your credit report that could be holding you back from getting the best refinance rates for your next home loan.

Credit Reports Are Flawed

It’s a great idea to stay on top of your credit reports every year for errors that could damage your credit score. After all, the interest rates you’re offered as a consumer for credit cards, car loans and mortgages are all based on your credit scores. You can get free copies of your credit reports by visiting the government-mandated website annualcreditreport.com. Once you’ve got your credit report do you know what errors to be keeping an eye out for?

According to the government four out of five credit reports has damaging inaccurate information. Here are the six problems you want to be sure aren’t keeping you from today’s best refinance rates.

  1. Closed Accounts Can Hurt You
  2. Closed accounts on your credit aren’t necessarily a bad thing, but it depends on who closed them. If you have accounts like department store credit cards that you paid off and closed but they’re listed on your credit report as “closed by grantor” this could be damaging your credit score.

    Closed by grantor means the lender decided to close the account which reflects negatively on you. Make sure that all closed accounts indicate that you closed them voluntarily if this is the case.

  3. Outdated or Incorrect Information
  4. Negative information drops out of your credit reports after seven years. The exception is if you’ve had a bankruptcy. Those stick around for ten years. Even if you have unpaid collection accounts those will go away after seven years. The good news is that nothing is permanent and time heals everything, including your credit reports.

    With that being said make sure blemishes from your past aren’t still being reported after seven years. If you find outdated information you can file a dispute on each credit bureau’s website using the following links:

  5. Bogus Accounts & Identity Theft
  6. It’s not uncommon to find accounts that aren’t yours listed on your credit reports. This doesn’t automatically mean you’re a victim of identity theft. It’s possible someone else opened the account in your name or it could simply be an error that was mistakenly listed on your credit history.

    Creditors often confuse individuals with similar names or social security numbers due to careless record keeping and reporting.

    Regardless of how the incorrect information found its way into your credit report you need to get it fixed fast. You’re not legally responsible for fraudulent accounts they can still deep six your credit score and prevent you from getting the best refinance rates.

    If you are a victim of identity theft you’ll want to report it to the Federal Trade Commission online at FTC.gov or by calling the Identity Theft Hotline at 1-877-ID-THEFT (1-877-438-4338). After you file an identity theft complaint with the FTC you’ll want to dispute the fraudulent accounts with each of the credit bureaus using the links listed above.

  7. Duplicate Charge Or Collection Accounts
  8. Sometimes you’ll find credit accounts that have been double reported on your credit history. This means the creditor is listed twice. Having one account listed as two can negatively impact your debt-to-income ratio, dragging down your credit score.

    In addition to credit card accounts this commonly happens with collection accounts that have been sold off to different agencies. You could find a debt reported by the original lender and any number of collection companies that have had your account. The duplicate listing magnifies the negative affect on your credit score.

  9. Ongoing Billing Disputes
  10. If you’ve ever disputed a billing error that resulted in late or missing payments this information could wind up in your credit report.

    It’s not common for lenders to report negative information quickly, even when they’re in the wrong. This information can be devastating to your credit score until the creditor fixes their mistake. You should save any written correspondence from the lender in case you need to document the lenders error when filing a dispute with a credit bureau.

  11. Fallout From a Divorce Can Wreck Your Credit
  12. Financial difficulties is a common reason for divorce and walking away from a couple’s debt can stick with you for seven years. There’s not a lot you can do with any leftover negative information that came when you were married. If your divorce came with a bankruptcy you’ll be stuck with that for an additional three years.

    Make sure that you’ve removed your name from any joint accounts as soon as divorce is final, and comply with the terms set by the court in your divorce decree. Your divorce decree could be a useful tool for removing negative information from your credit reports after the divorce so make sure your attorney is covering all the bases when it comes to the financial aspect of your divorce.

Dispute Any & All Inaccurate Information

If you find any inaccurate information in your credit report, no matter how insignificant, make sure you file a dispute. All three credit agencies (Equifax, Experian, and Trans Union) have online disputes that simplify the process of disputing incorrect information in your credit file.

Even something as insignificant as an incorrect address or an outdated employer could lead to problems down the road.

When you file disputes that require documentation make sure you’re sending in copies. Never send original documents to any creditor or agency. One thing you can always count on is people will screw up reporting and lose your documentation.

If you’re a member of a credit union you might have access to low-cost credit monitoring services. If you’d rather not pay to stay on top of your credit reports you are entitled to one free copy of your credit reports per year at the Annual Credit Report website. This will get you your credit reports but if you’re interested in a credit score you’ll have to pay to get one.

When monitoring your credit score make sure it’s your FICO score and not some other scoring. You can get a FICO score from myfico.com or from Equifax or Transunion. Experian offers their own scoring at this time and is not the FICO score used by mortgage lenders.

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You can learn more about getting the lowest refinance rates from today’s best mortgage lenders without paying unnecessary fees by checking out my free Underground Mortgage Videos.

httpv://www.youtube.com/watch?v=be9md0A0_2c
  • Underground Mortgage Videos
Here’s a quick sample to get you started refinancing with today’s best mortgage lenders without overpaying…

Mortgage Rate Quotes Dirty Secret Revealed

Searching the web for mortgage rate quotes hoping to grab one with the lowest interest rate without paying junk fees or markup? There are a few things you need to know about the mortgage rate quotes you find online if you’d like to avoid paying too much. Here is one of my best tips to help you find the lowest mortgage rate quotes without paying unnecessary markup or junk fees.

Mortgage Rate Quotes Online

Refinancing your home loan is no different than any other purchase you’ll make; there are people lurking at every corner trying to make a buck at your expense. Home loans in today’s market are retail products not unlike kitchen appliances. There’s always someone in the middle marking that Kenmore appliance up to get a commission. This normally isn’t a problem as retail markup is a fact a life; however, the problem is that you’re already paying the person arranging your home loan a perfectly reasonable origination fee for their work…AND they’re helping themselves to an “extra” commission at your expense.

What am I talking about today? It’s a subject that makes most home loan originators hot under the collar and with good reason. This unscrupulous markup of your mortgage rate quotes can double, even triple their commission on your home loan. Here’s how this scandalous robbery works.

Mortgage Rate Quotes & Yield Spread Premium

The markup I’m discussing today applies to brokers. Banks also markup up their mortgage rates for different reasons and thanks to a loophole in the Real Estate Settlement Procedures Act your bank isn’t required to disclose markup or profit margin on your loan. It makes sense not to get mortgage rate quotes from a lender that doesn’t have to play by the rules right? This is why I recommend avoiding banks when it comes to shopping for mortgage rate quotes to purchase or refinance your home.

What is Yield Spread Premium? Simply put Yield Spread Premium is a commission paid by lenders to loan originators who lock and close their mortgage rate quotes with a higher than necessary interest rate. What do I mean by higher than necessary? The lender behind your home loan has an interest rate they will approve your for on any given day. Both your lender and broker know what this figure is; however, the broker marks up your interest rate based on what they think you and other homeowners will overpay to get this second commission from the lender. That’s right, for every .25% that you agree to overpay for your next home loan the broker pockets an additional one percent of your home loan amount form the lender…at your expense I might add.

This unnecessary markup of your mortgage rate quotes drives up your payments and leaves you with less cash at the end of the month while your broker laughs all the way to the bank. There is good news for you here today; you can avoid this unnecessary markup of your mortgage rate quotes and walk away from the table with a wholesale interest rate once you find the right broker to arrange your next home loan. There are honest, hardworking brokers out there that don’t take advantage of their customers by marking up their mortgage rate quotes and lacing them with junk fees. You just need to know where to find one.

You can learn more about getting mortgage rate quotes that don’t include 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 quick sample to get you started uncovering your broker’s dirty secret so you’ll keep more of your hard earned cash after paying your home loan.

Best Refinance Home Mortgage Loan Rate

People frequently find the site by typing the words “Best Refinance Home Mortgage Loan Rate” into a search engine. They’re probably searching for a rate quote; however, how many homeowners actually know what they’re looking at when they get one?

Best Refinance Home Mortgage Loan Rate will get you a mortgage with Yield Spread Premium.

Most homeowners don’t know the rate quotes they receive are actually retail interest rates. They’ve been approved for a wholesale rate but their loan originator marks that rate up to get a commission from the lender. The difference between the wholesale rate you’re approved and the above market interest rate you close is called Yield Spread Premium.

Loan originators mark up mortgage rates because they can double, even triple their commission by adding Yield Spread Premium. Most mortgage brokers and loan representatives will never tell you they’re doing this; if you don’t catch the cleverly disguised markup on your HUD-1 statement you’ll never know what your could have been. Here’s an example to illustrate how the “best refinance home mortgage loan rate” quotes can hurt you.

Suppose you’ve decided to refinance your existing $250,000 mortgage loan for 30 years at 6.75 percent. Your mortgage company charges you a one percent fee for the loan origination. One percent is a perfectly reasonable fee for a mortgage broker’s services; however, most brokers will tell you otherwise. What your mortgage broker isn’t telling you about this transaction is that you qualified for a 6.0% and they’ve marked up your rate to 6.75% for their commission. The wholesale lender pays your broker a bonus of 1.0% for every .25% you agree to overpay. In this example the broker receives a whopping $10,000 commission for overcharging you.

If you’ve ever wondered how your mortgage broker is making his Hummer payment, now you know. Your broker walks away with a ridiculous commission and you get stuck paying an above market mortgage rate. The good news is that you can stop your loan originator from lining their pockets at your expense. Homeowners who learn to recognize Yield Spread Premium can negotiate with potential mortgage brokers to avoid paying this ridiculous markup. This is much easier than you think and I’ve prepared a simple video to show exactly how to do it. For immediate access to my mortgage refinancing toolkit simply register using the link provided at the top of this page.