Mortgage Refinancing With Your Bank

Mortgage Refinancing with your bank can be a fast and convenient way of lowering the monthly payments on your home loan; however, is your bank really the best place for avoiding hidden markup and junk fees? Mortgage refinancing can save you thousands of dollars if you find the right person to arrange your next home loan; choosing the wrong person could cost you. Here are several of my best tips for getting the lowest mortgage rate while avoiding paying too much in closing costs and fees.

Is Mortgage Refinancing With Your Bank a Good Idea?

Many of your neighbors choose bank mortgage refinancing because it’s a quick and easy avenue to a new home loan. What could be easier than automatically transferring your mortgage payment from your checking account each month? The problem with bank originated mortgage refinancing is what your banker isn’t telling you and isn’t obligated to tell you. You see, banks are exempt from the Real Estate Settlement Procedures Act that requires loan originator to disclose their profit margin and markup of your interest rate. The banking lobby spent millions of dollars lobbying congress in the early nineties to have this key bit of disclosure legislation changed to exclude banks, thereby giving them an unfair advantage. When it comes to your home why would you even consider working with a lender that doesn’t have to play by the rules?

Bank Service Release Premium

I’m going to take a moment to explain how your bank exploits this loophole in the Real Estate Settlement Procedures Act. Every mortgage lender out there, banks or wholesale lenders alike makes money by selling their loans to investors on the secondary market. The higher the interest rate on these loans, the more profit lenders make from investors. Wholesale mortgage lenders have a disadvantage next to banks because their customers know how much their mortgage rates were marked up to create this profit for the lender. Not everyone understands it, but a savvy homeowner can save thousands by recognizing and avoiding this markup.

Your bank isn’t required to disclose any of this mortgage refinancing markup. They know the home loan rates other lenders are offering their customers; however, they mark the bank mortgage rates up as much as they think their customers will pay to create this extra profit known as Service Release Premium for the bank. Because your bank isn’t required to disclose any of this markup you to you all you’ll get when mortgage refinancing with your bank is an Annual Percentage Rate based on a Good Faith Estimate filled with low-balled fees.

Wholesale Mortgage Refinancing?

It is possible to refinance your home loan with a wholesale mortgage rate and pay only a one percent origination fee in the process. Banks simply do not offer their customers wholesale mortgage rates because they don’t have to; however, find the right mortgage broker and you can get this kind of deal and save yourself as much as $1200 per year from unnecessary markup. Who is the right mortgage broker for mortgage refinancing with a wholesale rate? Look for an independent, self-employed broker. These brokers will be much more willing to negotiate the type of deal that gets you wholesale rates without points or junk fees.

You can learn more about mortgage refinancing with wholesale rates by checking out my Underground Mortgage Videos.

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

Here’s a quick taste to get you started cutting as much as $1200 worth of fat from your mortgage payments every year.

Refinance FHA Home Loan

Typing Refinance FHA Home Loan into Google might have brought you here today searching for the best way to get a new home loan. Did you know that simply searching for Refinance FHA Home Loan could result in overpaying thousands of dollars for your new mortgage loan? Many homeowners get a false sense of security because they get FHA home loans; however, government backing by the FHA does nothing to protect you from unnecessary markup or junk fees. Here are several tips to help you avoid the trap of simply typing Refinance FHA Home Loan and save thousands of dollars from unnecessary markup and junk fees.

Refinance FHA Home Loan Online

The internet is a great resource for your home loan. Just type Refinance FHA Home Loan into your browser and you’re on your way to finding great loan offers, right? Not exactly…what you might not know about those refinance FHA home loan offers is that they all include markup intended to create a commission for the person arranging the home loan. Nothing wrong with that you’re saying…mortgage brokers deserve to get paid too. The problem is that you’re already paying the person arranging your refinance FHA home loan a perfectly good loan origination fee. Any markup of your interest rate for lender paid compensation is at your expense in the form of a higher than necessary monthly payment.

How does this unnecessary markup of your mortgage rate quote work? Wholesale lenders publish daily rate sheets used by mortgage brokers to quote mortgage rates. These rate sheets include various amounts of markup intended to generate the fee known by mortgage fat cats as Yield Spread Premium. Simply put, brokers who lock and close your refinance FHA home loan with a higher than necessary interest rate get one percent of your loan amount for every .25 percent they overcharge you. Think of this fee as an incentive for overcharging you. Mortgage lenders do this because any refinance FHA home loan with a higher than market interest rate brings them a premium profit when sold to investors on the secondary market…this is how lenders make the majority of their profits.

How to Pay Less for Your Home Mortgage Loan

What your lender doesn’t want you to know is that you can get a wholesale mortgage rate. Wholesale mortgage rates are also known as par mortgage rates; this simply means there is no Yield Spread Premium generated for the broker and you won’t pay discount points to qualify. Most mortgage brokers will tell you that you cannot get wholesale rates because they’re protecting their commission. Truth be told, find the right mortgage broker and you’ll not only get a wholesale refinance FHA home loan but can avoid paying junk fees in the process.

What should you be paying for your refinance FHA home loan? A mortgage origination fee of one percent is more than reasonable for the broker’s work. This is assuming there is no Yield Spread Premium and you’re not finding junk fees on your HUD-1 like the broker courier fee. Here’s a bonus tip, never rely on the Good Faith Estimate to provide reliable lender fees; it is after all just an estimate given in “Good Faith.” When it comes to home loans the final word in lender fees is the HUD-1 statement. Lenders are required to give you one at least 24 hours prior to closing. If you’re not going through this document with a fine-toothed comb you could be losing thousands of dollars in unnecessary fees.

You can learn more about getting a wholesale mortgage rate for your refinance FHA home loan while avoiding junk fees by checking out my free Underground Mortgage Videos.

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

Here’s a quick video to get you started that exposes your lender’s dirty secret that according to the HUD Secretary will be responsible for fleecing American’s out of sixteen billion dollars this year alone.

Home Loan Mortgage Broker

Are you considering using a home loan mortgage broker to refinance or purchase your home? Many people ask me which bank is best to get their home loan from; however, my answer might surprise you. If you want the lowest mortgage rates without unnecessary markup and junk fees you need to find the right person, not a bank to arrange your mortgage loan. Here are several of my best tips to help you find the right home loan mortgage broker without paying junk fees.

Banks vs. Your Home Loan Mortgage Broker

There’s a reason I don’t recommend banks when it comes to home mortgage loans. The main reason is thanks to the banking lobby banks are exempt from key disclosure legislation in the United States that protects you from predatory lending practices. The banking lobby spent millions of dollars lobbying Congress to have the Real Estate Settlement Procedures Act (RESPA) changed to exclude banks, giving them an unfair advantage when it comes to hiding their profit margins and fees on your home loan. In fact, this loophole is so big all your bank is required to give you is a Good Faith Estimate and an Annual Percentage Rate (APR) based on the lowballed fee estimates they’ve provided you. The Good Faith Estimate you receive from lenders is little more than a work of fiction suitable for lining your cat’s litter box. Home loan mortgage brokers are not exempt from RESPA and are required to disclose their profit margins, markup and fees on a HUD-1 Settlement Statement 24 hours prior to closing your home loan.

Finding the Best Home Loan Mortgage Broker

Most people shop for a new home loan the same way they shop for kitchen appliances. If all you do when shopping for a new refrigerator is call appliance stores and choose the one with the lowest price then all you’ve accomplishing is to get the best retail price for your money. Everyone knows wholesale prices are the way to go when it comes to appliances and the same is true when it comes to home loans. Home loan mortgage brokers have access to wholesale rates and if you find the right one to arrange your next home loan you can walk away from the closing table with a wholesale rate without paying any junk fees. The trick is how to find the right person to arrange your home loan.

Mortgage Origination Fees & Yield Spread Premium

If you want the best home loan mortgage broker for the job you’ll need to understand how these brokers are compensated for their work. Most home loan mortgage brokers charge an origination fee for their services. This is a flat fee you’ll pay at closing which appears on your Good Faith Estimate and HUD-1 as a loan origination fee. One percent of your home loan amount is a perfectly reasonable fee to pay for your broker’s work. Unscrupulous home loan mortgage brokers collect a second fee from the lender known as Yield Spread Premium. This fee is paid to any loan originator that locks and closes your home loan with a higher than necessary rate. Mortgage lenders publish rate sheets that include varying amounts of Yield Spread Premium and shady brokers quote rates based on what they think you’ll pay, not what you should be paying.

This used car salesman’s tactic is the reason that nearly all of your neighbors are currently overpaying for their home loans. They’re overpaying thousands of dollars because they trusted the wrong person to arrange their home loan and that person took advantage of them.

You can learn more about finding the right home loan mortgage broker and getting a wholesale interest rate by checking out my free Underground Mortgage Refinancing Videos.

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

Here’s a quick sample that shows you how mortgage lenders are fleecing American homeowners out of sixteen billion dollars this year alone…