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?

Are you considering refinancing your home loan but aren’t sure if a new mortgage loan is a good idea at the moment? Refinancing can save you money on your mortgage payment every month with lower mortgage rates; however, most of your neighbors overpay for their home loans because of unnecessary markup and junk fees. Here are several tips to help you answer the question Should I Refinance My Mortgage while avoiding paying too much for your next home loan.

Should I Refinance My Mortgage Loan?

Mortgage rates are once again at all-time lows. If you missed out the last time mortgage rates fell below 5% now is your chance to lock in a great rate. There are many reasons for refinancing your home mortgage and it doesn’t always have to be to get a lower payment amount. In fact, many homeowners refinance to consolidate higher interest debt or borrow cash against home equity. In these cases it is not uncommon to walk away with a higher mortgage rate and payment amount after refinancing; although, with today’s lower mortgage rates you may be able to pull it off without too much of an increase in your payment amount.

Beware Bad Advice and Junk Fees

There is of course a lot of bad advice on the Internet when it comes to anything; one bit of bad mortgage advice you’re likely to encounter is the so called two percent rule of mortgage refinancing. This “rule” states that you should not refinance your home mortgage unless the new mortgage rate is two percent lower than your existing mortgage loan. As we’ve already discussed there are perfectly valid reasons for refinancing your home loan with a higher mortgage rate than you currently have. If your goal is to refinance for a lower mortgage payment it makes more sense to base your decision on the amount of time it will take you to recoup your expenses from refinancing. Your expenses come in the form of closing costs which you will recoup from your savings with the lower mortgage payment. If you can live with the amount of time it will take you to recoup these expenses than it makes perfect sense to refinance in your situation.

What About Mortgage Junk Fees?

Once you’ve answered the question Should I Refinance My Mortgage you’ll want to avoid paying junk fees to keep your closing costs as low as possible. One of the most common junk fees you’ll encounter from nationwide lenders such as Quicken Loans is the mortgage rate lock fee. Wholesale mortgage lenders never charge a fee for locking in your mortgage rate. If your mortgage broker or “direct lender” is quoting you a fee for locking in your mortgage rate it is pure garbage and serves no purpose other than to boost their profit margin at your expense. There are a number of other mortgage junk fees you need to be aware of such as courier, administrative, and excessive loan processing fees. For a detailed explanation of mortgage junk fees and steps you can take to avoid them check out my free underground mortgage refinancing videos.

Unnecessary Mortgage Rate Markup

Once you’ve answered the question Should I Refinance My Mortgage for yourself you’ll need to find a home loan that doesn’t include unnecessary markup of your mortgage rate. Banks, direct lenders, and mortgage brokers all markup mortgage rates to boost their profits at your expense. The markup goes by several different names including Yield Spread Premium and Service Release Premium; however, the end result is always the same: your mortgage payment is higher than it needs to be.

You can avoid all of this mortgage rate markup nonsense by finding the right person to arrange your home loan when refinancing. Mortgage shopping isn’t about comparing loan offers unit you can’t see straight…that’s what your neighbors did and they overpay an average of $1200 every year. If you concentrate your efforts on finding the right person for your next home loan you’ll avoid all of the unnecessary markup and mortgage junk fees that according to the Secretary of Housing and Urban Development will result in homeowners in the US overpaying sixteen billion dollars this year alone.

You can learn more about answering the question Should I Refinance My Mortgage for yourself while avoiding unnecessary markup and junk fees by checking out my free underground mortgage refinancing videos.

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

Register today while this is still a free offer and check out this sample of what you’ll get when you sign up. These mortgage refinancing videos are yours today with nothing to buy later on.

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.

Refinance ARM

If you are a homeowner who purchased your home with an Adjustable Rate Mortgage now is the perfect time to lock in a comparable mortgage rate and payment amount. Fixed rate mortgage loans are currently just over five percent and can give you the peace of mind of a future-proof affordable mortgage payment. Here are several tips to help you save money and avoid paying too much when refinancing your ARM.

Mortgage Loans 101

As a homeowner in the United States there is one important lesson you need to learn about mortgage loans. This lesson is the mortgage industry’s dirty little secret and is the reason American homeowners will overpay sixteen billion dollars this year alone. What is this dirty mortgage secret you ask? It’s called Yield Spread Premium. Hold the phone…I know what you’re thinking. Yield Spread Premium? The first time I heard the term my eyes glazed over too; however, it’s not as scary as it sounds and is a fairly simple concept to wrap your head around.

Now if you’ve got an Adjustable Rate Mortgage sitting on your home your main concern for refinancing with a fixed rate loan is getting the lowest possible mortgage rate that won’t jack your monthly payment up while avoiding junk fees from the broker and lender. Sounds hard right? Don’t worry; it’s much easier than you think.

Yield Spread Premium for Dummies

So what is this Yield Spread Premium and why do you need to avoid it? Simply put Yield Spread Premium is a percentage of your loan amount created when the broker marks up your mortgage rate…think of it as a commission or a bonus…better yet a kick-back from the lender. Why do mortgage lenders pay kick-backs? They pay this money under the table because they make the majority of their money not by sitting back and collecting your payments every month but by selling loans to investors on the secondary market. Guess which loans make them the most money? You guessed it…loans with higher than market mortgage rates.

Avoiding Mortgage Rate Markup

Now that you know that your mortgage company or broker marks up your mortgage rate for fun and profit, how can you…a savvy and experienced homeowner avoid this heinous markup? All you have to do is learn to recognize the markup in your loan documents like the mortgage rate lock confirmation and HUD-1 settlement statement and you’ll be on your way to avoiding paying it. Here’s a tip: You’ll almost never find Yield Spread Premium disclosed on the Good Faith Estimate. Why is this you ask? The Good Faith Estimate is little more than a marketing tool used to make loans look attractive…most brokers leave their markup off this document completely. Scandalous you say? What is the Good Faith Estimate after all…it’s just an estimate of loan fees given in “good faith…”

Doing Your Homework Will Save You Thousands…

I know what you’re thinking…HOMEWORK?!! Egad. I’m with you…who wants to do homework when I could be off doing [insert pastime here]. The fact of the matter is that if you want the lowest possible mortgage rate and payment amount you’re going to have to work to get it. Doing your homework and learning about mortgage loans doesn’t have to be difficult and I’ve even put together a series of online mortgage videos to show you how to refinance without overpaying for your next home loan.

Best of all these money saving videos are free with no strings attached. I realize most folks are suspicious of things that are free and wonder what the catch is. No catch, really. Register your user name and password and you’ll have immediate access to the online mortgage videos and all of the materials including a list of upfront mortgage brokers in your area to get you on the right track…all this and there’s free online support available seven days a week on this website.

Refinance My Home Loan

mortgage rate Refinance My Home LoanIf you’re searching for information on the Internet to help you refinance your home loan, you’re probably concerned about paying too much for the new mortgage. Most homeowners understand how mortgage rates affect their monthly payment amount but not many know their mortgage rates are marked up to give a commission to the broker.

Here are several tips to help you avoid this unnecessary markup of your mortgage rate while avoiding lender junk fees.

The commission based markup of your mortgage rate is known as Yield Spread Premium (YSP). Simply put, YSP is a percentage of your loan amount paid by the lender when your mortgage broker locks and closes your mortgage with a higher than necessary mortgage rate. Lenders pay a commission to brokers for overcharging homeowners because these loans bring a premium profit when sold to investors on the secondary mortgage market.

Here’s a simple example of Yield Spread Premium. Suppose you’re refinancing your home for $150,000 and the broker tells you the lender approved your loan at 6.75%. You agree to pay the broker a 3% origination fee for their services and walk away with a monthly payment of $972 per month. What your mortgage broker didn’t tell you is that the lender actually approved your for a 6.0% mortgage rate which would have saved you $75 per month…that’s $900 per year you’re throwing away because your mortgage broker lied to you. In this example a lie of omission is still a lie right?

Refinance My Home Loan Today

Yield Spread Premium sounds like a scary technical term, but that’s really all there is to it. The HUD Secretary was quoted saying American homeowners will overpay almost sixteen billion dollars this year alone and Yield Spread Premium is responsible. It is possible however to refinance your home loan without paying this unnecessary markup. There are honest mortgage brokers out there willing to work for a flat origination fee of one percent without inflating your mortgage rate. The free videos available on this website will not only show you how to find this person but how to avoid lender junk fees. When you register for the refinancing videos you’ll also get a list of recommended mortgage brokers in your area to help get you on the right track.