7 Tips to Get the Lowest Refinance Mortgage Rates

If you’re shopping for the lowest refinance mortgage rates you might be disappointed to find the quotes you’re getting from companies like Amerisave are much higher than what lenders are advertising. Mortgage lenders use a bait-n-switch trick when advertising refinance mortgage rates; advertised rates are frequently based on a credit score of 780 or better. If your credit score is less than perfect your refinance mortgage rates will come in much higher; however, there are steps you can take to improve your quotes and save a lot of money in the process. Here are several tips to help you get better refinance mortgage rates for your next home loan without paying unnecessary fees or discount points.

Beware Deceptive Lender Tricks

Mortgage lenders manipulate their advertised refinance mortgage rates by using lofty credit scores or hiding discount points in the fine print.

If your credit score is lower they’ll still give you those low refinance mortgage rates, you’re just going to have to pay through the nose to qualify.

Lenders will give you lower rates if you pay discount points up front…one point is one percent of your home loan amount paid at closing and typically lowers your refinance mortgage rates by .25 percent per point.

While it’s true that mortgage interest rates are near historically low levels you shouldn’t have to pay a fee to get them. Because interest rates are at such low levels lenders are doing everything they can to boost profit at your expense with junk fees and unnecessary discount points. Mortgage brokers are also guilty of fleecing your neighbors by overcharging their origination fee. The good news is that you don’t have to be a personal finance guru to avoid overpaying and benefit from today’s lowest refinance mortgage rates. You just have to find the right person to arrange your next home loan.

How to Get Better Refinance Mortgage Rates

Before you start shopping for a new home loan, start by checking your credit reports for mistakes and outdated information. Mistakes are very common and drag your credit score down like a boat anchor; you can check all three reports for free every year by visiting the website AnnualCreditReport.com.

If you find mistakes you’ll need to dispute the incorrect information and allow enough time for the correction to be reflected in your FICO Score.

Other steps you can take to make sure your credit score is as high as possible include paying down the balances on your credit cards and avoid applying for new accounts for at least 90 days before shopping for refinance mortgage rates. It goes without saying; however, make sure you’re paying all of your bills on time as it seems to take late payments forever to drop off your history. Once you’ve cleaned up your credit reports it’s a good idea to keep an eye on them throughout the year. If you’re a member of a credit union you may be able to take advantage of low-cost credit monitoring services that will do this for you.

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You can learn more about getting today’s best refinance mortgage rates without paying unnecessary discount points or lender junk fees by checking out my free Underground Mortgage Videos.

httpv://www.youtube.com/watch?v=be9md0A0_2c
  • Free Underground Mortgage Videos

Here’s a quick sample to get you up to speed on deceptive mortgage lender tricks that cost your neighbors thousands of dollars…

Refinance Mortgage Rates – Banks vs Brokers

Are you looking for the best refinance mortgage rates for your next home loan but aren’t sure if going through a bank or a broker is the best option? Did you know that both banks and brokers profit from hidden markup of your mortgage rate, but only one is required to disclose the markup? Choosing the wrong person to arrange your home loan can be an expensive mistake you don’t want to be paying for the next 30 years. Here are several of my best tips before you refi to help you get the lowest refinance mortgage rates for your next home loan without paying junk fees.

Get the Lowest Refinance Mortgage Rates

Mortgage refinancing is a huge industry and practically everyone in the business is trying to make a buck at your expense. Banks and Brokers are no exception to this; in fact, according to the Secretary of Housing and Urban development the hidden markup I’m discussing here will be responsible for your friends and neighbors in the United States overpaying sixteen billion dollars this year alone.

What is this hidden markup that’s a part of even the best refinance mortgage rates? I am of course talking about Yield Spread Premium (YSP). Yield Spread Premium is actually a fee paid to the broker arranging your home loan for locking and closing with higher than necessary refinance mortgage rates. Think of YSP as an incentive, a kickback really, paid by your lender to the broker for overcharging you.

Brokers Do It, Banks Do It Too

Yield Spread Premium is an incentive for brokers to mark up your mortgage rates paid by the lender. YSP doesn’t apply to banks because they are the lender backing the loan. In the bank’s case the premium they make by giving you higher than market refinance mortgage rates is called Service Release Premium. The bank knows they make the majority of their profits by selling home loans to investors on the secondary market and home loans with higher than market rates bring them a premium profit. This profit realized by the bank from overcharging you is the Service Release Premium, which accomplishes the same thing as Yield Spread Premium…less cash in your pocket. The kicker is thanks to a loophole in the Real Estate Settlement Procedures Act your bank isn’t required to disclose any of this hidden markup of your interest rate.

How to Get Wholesale Refinance Mortgage Rates

The good news is that getting wholesale refinance mortgage rates is as simple as finding the right person to arrange your next home loan. It’s not as hard as you think; you don’t have to be a personal finance guru or have a cousin in the business to get wholesale mortgage rates. You simply have to find a mortgage broker willing to work for a flat origination fee of one percent without taking Yield Spread Premium on your home loan.

You can learn more about finding the right person to give you wholesale refinance mortgage rates without paying junk fees by checking out my free Underground Mortgage Refinancing Videos.

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

Here’s a quick sample today to get you started finding the right broker for the job.

Warning: Your Mortgage Refinancing Company is Stealing from You

Did you know that your friends and neighbors are throwing away $1200 a year or more because they’ve paid too much for mortgage refinancing? According to the Secretary of Housing and Urban Development this mortgage refinancing theft is so widespread that it will cost homeowners in the United States sixteen billion dollars just this year. Did you also know that it’s possible get mortgage refinancing with wholesale interest rates and avoid overpaying? Here are several of my best tips for avoiding this rampant theft and refinance your home loan with wholesale rates.

Theft by Mortgage Refinancing

Am I being overly dramatic when I say your mortgage refinancing company is stealing from you? Hear me out and I’ll let you decide. Did you know that mortgage refinancing companies reward loan originators (your broker) with a little known fee called Yield Spread Premium for overcharging you? This fee is more like a kickback and an incentive for your broker to rip you off. Here’s how this mortgage refinancing theft works.

Did you know that lenders make the majority of their profits by selling your home loan to investors on the secondary market? Your lender knows that mortgage refinancing home loans with higher than market interest rates bring them a premium profit when these home loans are sold. Yield Spread Premium is an incentive for loan originators to mark up your interest rate.

Recent RESPA Law Changes

People often leave comments on my blog saying that recent changes to the Real Estate Settlement Procedures act in the United States make Yield Spread Premium illegal. This simply isn’t true; the new law only requires brokers to disclose Yield Spread Premium on your HUD-1 settlement statement along with their mortgage refinancing origination fee. As far as your broker is concerned it’s just business as usual because they all have clever ways of explaining this fee away if anyone happens to question it. Most people have never heard of Yield Spread Premium and why would you ever question a fee that’s not coming out of your own pocket?

The Trouble with Yield Spread Premium

The problem with Yield Spread Premium is not the fact that your lender is paying this fee but the reason they’re paying the fee. Consider for a moment mortgage refinancing on a $315,000 home loan. Suppose the broker is quoting you a mortgage rate of 5.75% and changing you an origination fee of 1.5%. Sounds reasonable right? What your broker isn’t telling you is that your lender actually approved you for an interest rate of 5.25% and they’ve marked it up to collect an extra point from the lender.

What’s the difference in your payment? If you had the interest rate you deserved when mortgage refinancing at 5.25% your payment on a 30-year, fixed-rate home loan would be $1,740 a month. Thanks to this theft your payment on the same home loan at 5.75% will be $1,839 a month. That’s a difference of $99 a month, a whopping $1,188 of your money that broker helped themselves to. Still think I’m being overly dramatic about mortgage refinancing theft?

You can learn more about getting wholesale mortgage rates for your next home loan by checking out my free Underground Mortgage Refinancing Videos.

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

Here’s a quick sample to show you how easy it can be to avoid mortgage theft on your next home loan.

How to Get Low Rate Home Loans

If you’re searching for low rate home loans and want to avoid hidden markup and junk fees on your next refi there are several things you need to know to avoid overpaying. Did you know that according to the Secretary of Housing and Urban Development your neighbors in the United States will overpay sixteen billion dollars for their mortgage loans this year? And yet, a few minutes from now, I’ll show you how to avoid this trap your neighbors have fallen into. Here are several of my best tips for getting low rate home loans without paying junk fees or unnecessary markup.

Low Rate Home Loans Online

Did you know that all of the mortgage quotes you get online include hidden markup intended to create an extra commission for the person arranging these so-called low rate home loans? This “extra” commission is pocketed on top of the perfectly good loan origination fee you’re already paying the person arranging your mortgage and is the reason most of your neighbors are paying too much. How do you find low rate home loans? While it’s true that the internet can be an excellent resource for comparison shopping, if all of the mortgage quotes you get contain this hidden markup, what good is comparison shopping? (Just one of the mistakes made by your neighbors)

The same is true of the low rate home loans your mortgage broker promises you. The trick to finding the best deal isn’t comparison shopping mortgage quotes until you’re blue in face, it’s finding the right person to give you access to low rate home loans. There are honest, hard-working mortgage brokers out there that don’t take hidden commissions, you just have to find one.

How to Find the Right Mortgage Broker

Before you can find the right person to give you the access you want you’ll need to understand how this hidden markup works. Mortgage fat cats call their hidden commission Yield Spread Premium. Simply put, Yield Spread Premium is a fee, (think kickback) paid to the person arranging your mortgage for locking and closing with a higher than necessary interest rate. Don’t think you can avoid Yield Spread Premium by taking out a mortgage from your bank, they have the same hidden markup with a different name. So how do you avoid this insidious mortgage Yield Spread Premium when shopping for low rate home loans?

We’re back to finding the right person to arrange your home loan. Start by telling potential mortgage brokers that you understand how Yield Spread Premium works and will not accept any offers that include the markup. Offer to pay them a flat origination fee of one percent (which is perfectly reasonable for the broker’s work) and you’ll be well on your way to getting a wholesale mortgage loan.

You can learn more about getting low rate home loans without paying hidden 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 taste to get you started on the road to saving thousands of dollars each year with a wholesale mortgage rate.

Bank Refi Pitfalls to Avoid

If you’re considering a bank refi for your next mortgage there are several things you need to know about bank refi loans that could cost you thousands of dollars in hidden fees and markup. This hidden markup of your bank refi drives up your payments by $1200 a year or more! Here are several of my best mortgage refinancing tips to help avoid paying too much for your next home loan, even when considering a bank refi.

Bank Refi Secrets

The number one problem with bank refi lons that you might not know about is that your lender is exempt from laws that protect homeowners in the United States from predatory lending practices. That’s right; your bank is exempt from the Real Estate Settlement Procedures Act (RESPA) which requires mortgage brokers and lenders to disclose their profit margin and markup of your home loan. In the 1990s the Banking Lobby in the United States spent millions of dollars “lobbying” lawmakers to have RESPA changed to exclude banks and credit unions. They succeeded and as a result your bank is not required to disclose any of their markup or profit margin from your bank refi loan. You’ll get little more than an Annual Percentage Rate and Good Faith Estimate to base your decision for taking the bank refi loan.

The Problem with Annual Percentage Rate

The problem with the bank refi Annual Percentage Rate (APR) is that it is based on a Good Faith Estimate. Mortgage lenders routinely low-ball the figures on Good Faith Estimates to make their loan offers more attractive. After all, it’s just an estimate given in “good faith” right? As an educated consumer, you know what that’s worth in today’s marketplace. Another problem with Annual Percentage Rate is that while Truth-in-Lending laws require lenders to provide you with their APR there is no standard for how that APR is calculated or accountability for what it contains. The Annual Percentage Rate from one lender to the next may not include all of the costs or fees associated with locking and closing the bank refi loan. This makes it impossible to make apples-to-apples comparisons of bank refi loans when shopping for the lowest mortgage rates and fees.

Because the Annual Percentage Rate is based on a Good Faith Estimate for which here is no standard or accountability among lenders it is all but worthless for basing your decision when it comes to taking out a bank refi loan.

This is why I recommend avoiding bank refi loans completely…why would you ever considering doing business with any lender that doesn’t have to play by the rules? You see how angry people get about all of the shady dealings and kickbacks when it comes to the health care industry, if people only knew about all of the dirty dealings the Banking Lobby is responsible for they would be outraged.

What your lender doesn’t want you to know about bank refi loans is that the majority of their profits comes from selling home loans with higher than necessary mortgage rates to investors on the secondary market. Profit made this way is known to the industry as Service Release Premium. The bank knows what wholesale mortgage rates are and what you could get if only you knew better; however, they mark up your bank refi rates to collect this premium profit known as Service Release Premium.

Mortgage Broker Banks

Bank refi loans are a sure way to overpay for your home loan. When the Real Estate Settlement Procedures Act changed a number of brokers and other mortgage companies restructured their business to take advantage of the loophole. These individuals operate what are known as mortgage broker banks, meaning that they fund home loans with their own cash. By doing this, they are not required to disclose any more and overcharge homeowners like your neighbors in the same manner. How can you spot a broker bank? Ask the person arranging your home loan if they lock and close in the name of the wholesale lender or in the name of their own company. If they close in their company’s name, you know they’re operating as a broker bank, and the only reason for doing this is to take advantage of their customers. This is the direct mortgage lender lie, they want you to think that by cutting out the middleman you’re saving money, but it’s really only done to overcharge you.

You can learn more about bank refi home loans and avoiding junk fees that cost you thousands of dollars per year 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 that exposes another kind of hidden markup used by mortgage brokers to double, even triple their commissions at your expense.