Mortgage Refinancing Without Losing Your Shirt

Did you know that according to the Secretary of Housing and Urban Development in the United States your friends and neighbors will overpay sixteen billion dollars for their home loans this year alone? Did you also know that nearly all your friends and neighbors are overpaying as much as $1200 or more every year? Want to save that $1200 on your next home loan? I know I could sure use an extra $1200 in my budget with the direction this economy is taking, how about you? I’m pretty sure I know the answer to that question so settle in with a cold drink because I’m about to share with you my best tips for refinancing with the best mortgage refinance companies without paying hidden markup or junk fees.

Mortgage Refinancing With Wholesale Rates

If this is your first visit to you might be wondering who the heck am I and how am I qualified to give you mortgage refinancing advice? First of all, my name is Robert Regehr. I’m not a mortgage broker, banker, or anyone working in anything remotely financial. How am I qualified to give you mortgage refinancing advice? My first home loan was a train wreck. I fell for every dirty, underhanded trick that a sleazy mortgage broker uses to boost their commission at your expense when mortgage refinancing. I didn’t have a clue how bad my first home loan was until a good friend of my parents, who is a retired mortgage broker, pointed out the hidden markup and junk fees in my home loan.

When I figured out this broker had soaked me to the tune of $1200 a year I was mad enough to start this blog with the help of that retired mortgage broker and I’ve been sharing this dirty little mortgage refinancing secret the broker fat cats would rather you didn’t know about with anyone that’ll listen. I am of course, referring to a hidden fee paid by lenders called mortgage refinancing Yield Spread Premium. Don’t worry if you’ve never heard of Yield Spread Premium, I had never heard of it and based on the facts from the HUD Secretary, I’d say 97% of your friends and neighbors have never heard of it either.

What is Yield Spread Premium?

Simply put, mortgage refinancing Yield Spread Premium is a kickback lenders pay to any broker that locks and closes your new home loan with a higher than necessary interest rate. Lenders do this because they make the majority of their profits selling your home loan to investors on the secondary mortgage market. It’s this hidden markup that drives your mortgage refinancing up by as much as $1,200 a year or more in some States like California.

The good news is that you don’t have to fall for this hidden mortgage refinancing markup. It is possible to refinance your home paying just a flat fee of just one percent for loan origination and walk way from closing with a wholesale mortgage rate, you just have to know how to go about it. Don’t worry, you don’t have to be a personal finance guru or have a cousin in the business to get the kind of mortgage refinancing deal I’m describing here, you just need to find the right person to arrange your next home loan.

Get Wholesale Mortgage Rates & Save…

You can learn more about finding the right person to arrange your next home loan with wholesale interest rates by checking out my free Underground Mortgage Refinancing Videos.


Here’s a quick sample to get you started on the road to a wholesale mortgage rate by exposing more of your broker’s very dirty secret…

Mortgage Refinancing Advice You Need Today

If you’re considering mortgage refinancing this year there are several things you need to know that will save you thousands of dollars. Did you know that according to the Secretary of Housing and Urban Development homeowners in the United States (your neighbors) will overpay sixteen billion dollars this year for their home loans? You’ll want to keep reading this article today because I’m going to share my best tips for avoiding the unnecessary markup and hidden junk fees responsible for paying too much.

Mortgage Refinancing Without Overpaying

What is this hidden markup of your home refi that I’m talking about? It all has to do with the way mortgage brokers are compensated for arranging your mortgage refinancing. Many brokers slip hidden markup into your mortgage rate after charging you an origination fee and then tell you not to worry about the lender paid compensation on your HUD-1 Statement because that fee isn’t coming out of your pocket.

The fee I’m talking about is called mortgage Yield Spread Premium. What you need to know about the fee is that lenders reward brokers for locking and closing home loans with higher than necessary mortgage rates. Your broker knows the lowest rate your lender will approve you when mortgage refinancing; however, they mark that rate up to collect Yield Spread Premium from the lender. This markup of your interest rate when mortgage refinancing is not only unnecessary because you’re paying the broker a perfectly good origination fee, but drives up your payments for the entire duration of your new home loan.

Yield Spread Premium in Action

Here’s an example to illustrate my point for the need to avoid hidden markup when mortgage refinancing. Suppose for example you decide mortgage refinancing makes sense for $375,000. Your broker quotes you an interest rate of 6.25% and charges you an origination fee of 1.5%. The loan origination fee you’re paying is for the broker’s work when mortgage refinancing; however, in this case 1.0% is more than reasonable compensation. The fact that the broker is charging you a point and a half means you’ll have to pay $5,625 at closing when you should only be paying $3,750.

What your broker isn’t telling you about his home loan and what you probably wont find in your loan documents (unless you know what to look for) is that the lender actually approved you for mortgage refinancing at 5.75% and the broker marked your interest rate up to collect 2% more. Yield Spread Premium pays one percent of your loan amount for every .25% you overpay when mortgage refinancing.

What does this hidden markup do to your payments? Well, at 6.25% your payment on a thirty-year fixed-rate home loan will be $2,308. If you had the mortgage rate you deserve at 5.75% you’d only be paying $2,188. That’s a difference of $120 per month and a whopping $1,440 every year you’re throwing away just for trusting the wrong person to arrange your home loan.

Comparison shopping for a new home loan when mortgage refinancing isn’t about comparing interest rates and fees; it’s about finding the right person wiling to work for a flat origination fee of one percent without taking Yield Spread Premium on your home loan. There are plenty of honest, hard-working brokers out there mixed in with the mortgage fat cats…you just need to find the right broker to arrange your next home loan.

You can learn more about mortgage refinancing with wholesale rates without paying junk fees by checking out my Underground Mortgage Videos.


Here’s a quick sample to show you what’s possible when refinancing your home with wholesale mortgage rates.

Should I Refinance My Mortgage Loan?

If you’re contemplating refinancing but aren’t sure if a new home loan is right for you, there are several things you’ll want to consider before taking out a new mortgage. There are a number of old wives’ tales and loads of misinformation on the internet that can get in the way of making informed financial decisions. Here are several of my best mortgage tips to help you answer the question “Should I Refinance My Mortgage” without falling victim to the sea of misinformation online.

Should I Refinance My Mortgage Loan?

There’s an old wives’ tale told to this day by a number of “financial advisors” that states you should never refinance your home loan unless your new mortgage rate is at least two percent lower than your old mortgage rate. This is horrible mortgage advice. Instead of buying into the two percent rule of mortgage refinancing it makes more sense to base your decision on a cost and savings rather than this urban legend of financial advice. This is of course if lowering your payment is your goal when refinancing your home.

Let me explain…we all know that you loan amount and mortgage rate determine your monthly payment amount. This is done with a repayment process known as amortization. What it all boils down to is the lower your mortgage rate, the lower your monthly payments will be; however, there are refinancing costs you’ll need to consider also. I am of course referring to origination fees and closing costs. When answering the question Should I Refinance My Mortgage for you, it makes good financial sense to weigh the savings from your new, lower monthly payment against the cost of taking out the new home loan. If you can live with the amount of time it will take to recoup your origination fee and closing costs than mortgage refinancing makes good sense for you.

Here’s an example to illustrate how this works. Suppose your current mortgage rate is 6.5% on a 30 year, $250,000 fixed rate home loan. Your monthly payment on this home loan is $1,580 per month. Suppose you qualify for a 5.5% mortgage rate and your closing costs will be $6,500. Your new monthly payment with the lower 5.5% mortgage rate will be $1,418, which is a savings of $162 per month. Since you’re paying $6,500 in fees to save $162 per month it will take you 40 months, just over three years to recoup this expense before you realize any savings from your new mortgage. If you can live with three years then the answer to the question Should I Refinance My Mortgage is yes.

There are of course other reasons for refinancing that don’t result in a lower monthly payment. Many homeowners used risky adjustable rate loans to purchase their homes and are facing balloon payments or skyrocketing interest payments when their teaser rates expire. Refinancing these risky home loans with a fixed 30 year home loan is nearly always going to be the right choice. Another common reason for refinancing is to borrow cash against your home equity which could also result in a higher monthly payment.

How to Save Money When Refinancing

Once you’ve answered the question Should I Refinance My Mortgage the question becomes how can I do this without getting ripped off? There are a number of unnecessary junk fees and markup of your mortgage rate for a double commission that you’ll want to avoid to make sure you get the most for your refinancing dollar.

You can learn more about answering the question Should I Refinance My Mortgage for yourself while avoiding unnecessary junk fees or markup by checking out my free Underground Mortgage Refinancing Videos.


Here’s a sample of what you’ll get…this video explains why 95% of your neighbors pay too much for their home loans.