Get the Lowest Mortgage Rates Now

You’re in the market to refinance and you want the lowest mortgage rates for your next home loan right? Interest rates may be advertised at five year historical lows but that doesn’t mean you’ll walk away from closing with the lowest mortgage rates. Did you know that loan originators jack up their lowest mortgage rates to pocket a commission from the lender while lacing your home loan with junk fees? Here are several of my best mortgage tips to help you find the lowest mortgage rates without throwing your hard-earned cash away on junk fees and unnecessary markup.

Lowest Mortgage Rates Online

Google makes it easy to find mortgage quotes from dozens of lenders in a hurry. The problem with these quotes is that they all include markup intended to generate a commission for the person arranging your home loan. Don’t get me wrong, there’s nothing wrong with the person behind your mortgage getting paid for their work. The problem is that you’re already paying this person a perfectly reasonable origination fee AND they’re helping themselves to a commission from the lender at your expense.

The Mortgage Industry’s Dirty Little Secret

You’ve just stumbled on the mortgage industry’s dirty laundry. Did you know that mortgage lenders reward brokers and other loan originators with a fee for overcharging you? That’s right, for every quarter point that you agree to overpay the person arranging your loan pockets a whopping one percent of your home loan amount. This is on top of the one percent plus you’re already paying them for setting up your mortgage, all the while thinking you’re getting the lowest mortgage rates. How does this heinous markup of your mortgage rate work? It’s a pretty simple concept to wrap your head around and learning to recognize it will save you thousands of dollars.

Yield Spread Premium in Action

The mortgage fat cats have a term for the fee collected for the unnecessary markup of your lowest mortgage rates. They call it Yield Spread Premium. Basically, any loan originator that locks and closes home loans with higher than necessary interest rates can collect Yield Spread Premium. Sure, changes to the 2010 RESPA laws require them to disclose Yield Spread Premium with their origination fee; however, the shady ones have clever of ways explaining it away. They’ll tell you not to worry about this fee since it’s not coming out of your pocket and the fact that lender is paying it is keeping your costs down.

Poppycock! Don’t you just love that word? People don’t use it enough in everyday speech. What your broker isn’t telling you is why lenders are paying this fee and what it does to your monthly payment. Lenders reward loan originators with Yield Spread Premium because they know that home loans with higher than necessary interest rates bring them a premium profit when your loan is sold to investors. Your broker doubles, even triples their commission and you get stuck paying extra every month. Here’s an example to illustrate my point.

Case Study: Overpaying for Your Home Loan

Here’s an example of what you don’t want to do when trying to refinance with the lowest mortgage rates. Suppose you’re refinancing your home for $315,000. Your broker quotes you a rate of 5.25 percent and charges you 1.5 percent for loan origination. This means you’ll fork over $4,725 at closing when you should only be paying one percent or $3,150 for the origination fee. At 5.25 percent on a thirty-year fixed rate mortgage your payment will be $1,740 per month.

What the scoundrel isn’t telling you is that you actually qualified for a mortgage rate of 4.75 percent. Your broker marked up the lowest mortgage rates to pocket two percent of Yield Spread Premium from the lender…that’s $6,300 more on top of the $3,150 you’re already overpaying him. Ready to get angry? If you had the mortgage rate you deserve your payment would only be $1640 per month. That’s $1200 you’re throwing away every year…$1200 cash you could be using for other things.

The good news today is that you can avoid this unnecessary markup of your lowest mortgage rates without overpaying the origination fee or throwing your money away on junk fees.

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

Here’s a sample from my free Underground Mortgage Refinancing Videos that shows you step-by-step how to pay less for your next home loan.

How to Get the Lowest Mortgage Rate Refinance

Turn on any financial news and you’re likely to hear that mortgage rates are once again at five year, historical lows. Many homeowners like you are flocking to the Internet looking for the lowest mortgage rate refinance available. It’s true the web is an excellent resource when shopping for your lowest mortgage rate refinance; however, there are always people on and offline trying to make a buck at your expense. Here are several of my best tips to help you get the lowest mortgage rate refinance without paying junk fees.

Lowest Mortgage Rate Refinance Online

Most homeowners shop for their lowest mortgage rate refinance by collecting Good Faith Estimates from anyone that’ll give them one and trying to figure out which one has the lowest fees and rates. Others rely on the Annual Percentage Rate to help them pick their lowest mortgage rate refinance. The problem with both of these approaches is that they’re relying on lowballed and misleading information to try and pick their lowest mortgage rate refinance. The Annual Percentage Rate and Good Faith Estimates that they’re based on are little more than a work of fiction used to lure unsuspecting homeowners into overpriced mortgage loans.

Most people overpay for their home loans because they don’t know how loan originators are compensated. It doesn’t matter if you’re looking for the lowest mortgage rate refinance from a bank, broker, or one of those Internet giants like Lending Tree; they all make money the same way when arranging home loans. There is of course one exception that you need to know about before we talk about spotting junk fees and unnecessary markup. Banks don’t play by the same rules as other loan originators thanks to a little-known loophole in the Real Estate Settlement Procedures Act. Banks are basically exempt from disclosing their profit margins and markup of your home loan. If you want the lowest mortgage rate refinance possible I never recommend taking out a home loan from your bank. Why would you do business with any lender that doesn’t have to play by rules intended to protect you from predatory lending practices?

There is another category of loan originator you’ll want to avoid as well. The mortgage broker bank exists to exploit the same loophole enjoyed by banks. When the RESPA laws were changed to exclude banks many mortgage broker restructured their business to operate similar to banks and became exempt from the same disclosure laws. If you find a broker that closes home loans in the name of their own company instead of a wholesale lender you’ll know you’re dealing with a broker bank instead of a mortgage broker. The only reason a mortgage broker would choose to operate their business a broker bank is to take advantage of homeowners with undisclosed junk fees and markup.

How to Get Wholesale Mortgage Rates

Now that we’ve eliminated banks and broker banks, where can you go to get the lowest mortgage rate refinance? Only brokers have access to wholesale mortgage rates; however, you have to find the right broker to give you a wholesale rate. Many brokers will tell you that you can’t refinance your home with a wholesale rate because they mark up interest rates to get a commission from the lender. What these brokers don’t want you to know is that you can pay a flat origination fee of one percent and walk away from closing with a wholesale mortgage rate.

You can learn more about getting the lowest mortgage rate refinance for your home without paying junk fees or unnecessary markup with my free Underground Mortgage Refinancing Videos.

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

Here’s a quick taste to get you started by exposing your lender’s dirty secret that’s costing your neighbors thousands of dollars unnecessarily every year.

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.

Should I Refinance My Mortgage This Year?

If you’re considering a new home loan and are asking the question “Should I Refinance My Mortgage” there are several things you need to know about junk fees and markup. It’s true mortgage rates are at historically low levels and the media is beating their refinancing drum; however, what you’re not hearing about are the ways lenders and loan originators take advantage of homeowners. Here are several tips to help you answer the question “Should I refinance My Mortgage” without losing money in the process.

Should I Refinance My Mortgage Pros & Cons

Like most homeowners you’re probably considering refinancing to save money with a lower payment. It makes sense, lower your interest rate and your monthly payment goes down. The only problem is that it costs money to refinance your home and it’s smart to factor in this expense before answering the question should I refinance my mortgage for yourself. The fees you’ll be required to pay when refinancing include closing costs and origination fees, some of which are legit and some are pure garbage.

Should I Refinance My Mortgage: The Two Percent Rule

If you do any amount of research online when answering the question “Should I Refinance My Mortgage” you’re likely to encounter the two percent rule. Now whoever coined the “Two Percent Rule” was truly a bonehead as this “rule” states that you should never refinance your mortgage unless your new mortgage rate is at least two percent lower than your existing home loan’s rate. If this were good advice practically no one would be refinancing and we wouldn’t be here today. Instead of relying on some bonehead’s epically bad advice it makes more sense to base your answer to the question “Should I Refinance My Mortgage” on a cost/savings basis.

Evaluating your refinancing options like this tells you how long it will take to recoup your expenses and makes it easier to recognize and avoid junk fees. How do figure out how long it will take to recoup your expenses when refinancing? It’s easier than you think. First, figure out what your new monthly payment will be using a basic home mortgage refinance calculator. Subtract your new lower payment from your old payment and you’ve got your monthly savings with the new home loan. Next, total up all of your closing costs including any loan origination fees you’re paying the person arranging your new mortgage. Divide this total by your savings and Voila! you’ve got the number of months it will take you to recoup your expenses from taking out a new mortgage loan.

How to Maximize Your Savings When Refinancing

You can maximize your savings ensuring that it will take the least amount of time to recoup your expenses in two ways. First, get the lowest possible mortgage rate by avoiding your broker’s commission based markup of your mortgage rate. There’s a whole free video series available on this website on how to get the lowest possible mortgage rate when refinancing. Second, keep your loan origination fees as low as possible and weed out all of the unwanted junk fees from your closing costs. It’s not as hard as you think, in fact, following the system in my free Underground Mortgage Refinancing Videos will not only show you how to do all this but save you time in the process. You’ll keeps thousands of dollars of your hard earned cash and look like financial genius to your family and friends.

You can learn more about answering the question “Should I Refinance My Mortgage” by checking out my free Underground Mortgage Videos.

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

Here’s a quick sample to get you on track to cutting a hundred dollars of fat from your monthly payments. That’s $1200 a year you could be using for other things…

Home Mortgage Refinance Calculator Tips

Are you looking for the lowest interest rate, fees, and payment when refinancing your home mortgage loan? A home mortgage refinance calculator makes it easy to figure out how much your new payment will be; however, it won’t show you hidden markup that results in overpaying thousands of dollars. If you want the lowest payment a home mortgage refinance calculator is a useful tool only if you can avoid this hidden markup and junk fees. Here are several tips to help you get the lowest payment for next home mortgage loan.

How to Use a Home Mortgage Refinance Calculator

Using a home mortgage refinance calculator to evaluate mortgage quotes is simple. Plug in the amount you are refinancing, your mortgage interest rate, and the duration of your home loan and you’ll have your new payment at the click of your mouse. What you should know about this payment amount is that includes markup for a fee known as Yield Spread Premium. This fee is paid by lenders to any loan originator who locks and closes your home loan with a higher than necessary interest rate. This is the markup that no calculator will help you avoid.

Avoiding Hidden Markup of Your Interest Rate

If you want the lowest payment for your next loan before using that home mortgage refinance calculator you need to find quotes that haven’t been marked up for someone’s commission. First of all, don’t get me wrong, home loan originators deserve to be paid for their work like everyone else… and that is what your loan origination fee is for. A reasonable fee to pay for loan origination is one percent of your loan amount assuming the person arranging your fee has not marked up your interest rate for Yield Spread Premium.

How does this hidden markup interest rate for a commission work? For every quarter point that your loan originator marks up your interest rate the lender pays them one percent of your loan amount as this extra commission known as Yield Spread Premium. Your loan originator doubles, even triples their commission with Yield Spread Premium and you get stuck with a monthly payment that is a hundred dollars or more than it should be.

How to Get Wholesale Home Loan Interest Rates

How can you avoid this unnecessary markup of your home loan interest rate? Instead of relying on that home mortgage refinance calculator to tell you if your quote is a good deal you can save yourself thousands of dollars simply by finding the right person to arrange your next home loan. Start by telling potential originators that you’ll pay them a reasonable fee for loan origination but will not accept any mortgage quote includes markup for Yield Spread Premium. Once you’ve got mortgage quotes that haven’t been marked up for Yield Spread Premium you can run them through your home mortgage refinance calculator to determine how much you’ll be saving with a wholesale mortgage rate.

You can learn more about using a home mortgage refinance calculator to score yourself a wholesale home loan interest rate 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 on the path to a wholesale rate today.