Wholesale Mortgage Loans

If you’re considering refinancing your home loan you want the lowest mortgage rate and closing costs for your next mortgage. Refinancing with wholesale mortgage loans can not only get you the lowest possible mortgage rates but will help you avoid unnecessary fees… if you know how to do it. Getting wholesale mortgage loans can be tricky for the uninitiated; however, you don’t have to be financial gurus to get wholesale mortgage loans… you just need to know where to go. Here are several tips to help you get a wholesale mortgage loan when refinancing your home without paying unnecessary fees or markup.

Shopping for Wholesale Mortgage Loans

The first thing you need to know about wholesale mortgage loans is that they are not available to members of the public. If you contact a wholesale lender yourself you’ll be dealing with that lender’s retail division, not the wholesale lender itself. Before we can discuss how to go about getting wholesale mortgage loans it’s important to understand what makes a home loan wholesale and how wholesale lenders operate.

Before you can find a wholesale mortgage loan you need to know a little about the different types of mortgage lenders. The three types of mortgage lenders I’ll discuss today are banks, mortgage broker banks, and wholesale mortgage lenders. Bank mortgage loans can seem like a convenient way of refinancing your home loan right? What could be easier than having your mortgage payment automatically transferred from your checking account every month? The problem with bank originated mortgage loans comes from a little known loophole in the Real Estate Settlement Procedures Act that allows your bank to hide their profit margin and markup of your home loan.

Banks fund their mortgage loans with the bank’s money and therefore set their own mortgage rates. Your bank knows what wholesale mortgage rates are but marks up their mortgage rates up to collect a profit when your home loan is sold on the secondary market. Because of the loophole in RESPA legislation the bank is not required to tell you how much they’ve marked up your mortgage loan. The bottom line you need to know about bank home loans is that you’ll never get wholesale mortgage loans from your bank.

What about mortgage broker banks? When the RESPA laws were changed to exclude banks many mortgage brokers restructured their businesses to take advantage of the same loopholes enjoyed by your bank. These mortgage brokers formed lenders that fund their home loans with their own money and were therefore exempt from RESPA laws just like your bank. How can you recognize a mortgage broker bank? Simply ask if your home loan closes in their company’s name…if the mortgage closes in the broker’s name and not the wholesale lender you know you’re dealing with a mortgage broker bank.

Wholesale Mortgage Lenders

Wholesale mortgage lenders offer their products through mortgage brokers and other retail mortgage companies. They don’t offer wholesale mortgage rates to the public, but that doesn’t mean you can’t get wholesale mortgage loans. What makes a mortgage loan wholesale? Aside from the fact that it comes directly from a wholesale lender and not a bank or broker bank wholesale mortgage loans have mortgage rates that have not been marked up to create a commission for the person arranging your loan and do not require discount points be paid at closing. This type of wholesale mortgage rate is also known as a par mortgage rate. Your goal for refinancing your home should be to get as close to par as possible for your mortgage rate. How do you take advantage of par mortgage rates since wholesale lenders do not offer them to members of the public you ask? Simply find the right mortgage broker to arrange your wholesale mortgage loan without marking up your mortgage rate or charge you unnecessary fees.

Mortgage Broker Fees

Before you can find the right mortgage broker to arrange your home loan you’ll need to understand mortgage broker fees and compensation. Your mortgage broker gets paid for their work from a number of sources. The first, most obvious fee is the loan origination fee that appears on your Good Faith Estimate. Your loan origination fee is a flat fee you pay for the mortgage broker’s part in arranging your home loan. This fee is usually a percentage of your loan amount and a reasonable amount to pay the mortgage broker for loan origination is one percent of your home loan amount. Many brokers try and charge more than one percent; however, one percent is more than ample compensation for the mortgage broker’s work on your home loan.

The second way your mortgage broker get’s paid that we’re going to discuss today is the lender paid fee known as Yield Spread Premium. Mortgage lenders reward brokers that lock and close home loans with higher than necessary mortgage rates with a fee known as Yield Spread Premium. For every .25 percent that your mortgage broker overcharges you the lender pays them an additional one percent of your loan amount as a commission, this fee is paid in addition to the origination fee you’re already paying the broker. It goes without saying if you want wholesale mortgage loans you’ll need to find a mortgage broker that doesn’t take Yield Spread Premium in addition to your loan origination fee. Get yourself a mortgage rate that doesn’t include Yield Spread Premium and you’ll have a par mortgage rate, the wholesale mortgage loan you’ve been looking for.

How do you find the right mortgage broker to arrange wholesale mortgage loans? Start by telling potential mortgage brokers that you understand Yield Spread Premium and will not take a mortgage that includes this markup. Tell them you will pay a reasonable origination fee for their services but want a par mortgage rate for your next home loan. Once you’ve found the right mortgage broker for the job you’ll be on the path to refinancing your home with a wholesale mortgage loan.

You can learn more about wholesale mortgage loans and avoiding unnecessary fees when refinancing your home by checking out my free Underground Mortgage Refinancing Videos.

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

Here’s a sample you need to know about this unnecessary markup of your mortgage rate for kickback from the lender known as Yield Spread Premium. Register for these mortgage videos today while this is still a free offer.

Should I Refinance

If you’re asking yourself the question “Should I Refinance” there are a number of things you’ll want to consider before taking out a new mortgage loan.

There is a lot of bad advice out there when it comes to this question and ultimately the answer for you is going to depend on your individual situation.

Here are several tips to help you answer the question “Should I Refinance” for yourself and avoid paying too much when you do.

Forget the Two Percent Rule

Whoever came up with the two percent rule of mortgage refinancing deserves to be tied to an anthill and doused with honey. Really. The two percent rule is a wives tale that makes no sense whatsoever if you approach the question “Should I Refinance” logically. First of all, the two percent rule of mortgage refinancing states you should not refinance your mortgage unless your new mortgage rate is two percent lower than your old mortgage rate.

There are many reasons for refinancing your home loan. Some people refinance to get a lower mortgage rate; however, others refinance to consolidate first and second mortgage loans or borrow cash from the equity in their homes. No matter what your reason for refinancing if you are comfortable with the consequences of taking out a new mortgage then mortgage refinancing is probably the right choice for you. So what exactly do I mean by the consequences of mortgage refinancing?

Should I Refinance… How Long To Recoup My Expenses?

If the inventors of the two percent rule had actually thought about what they were doing they would have said it makes more sense to base your decision to refinance on how long it will take you to recoup your expenses from refinancing, if at all. There are some situations where you will never recoup your expenses from taking out a new mortgage loan but if you can justify the expense and are comfortable with the consequences, mortgage refinancing still makes sense. If you are refinancing to get a lower mortgage rate and payment amount you’ll want to consider how long it will take you to recoup your origination fees and closing costs with your new lower monthly payment.

Calculating how long it will take to recoup your expenses from refinancing is easy: simply divide your total expenses by the amount you’re saving each month. This figure will give you the number of months it will take you to make up your expenses from refinancing. If you’re happy with the lower payment and the amount of time it’s going to take you to pay back your closing costs then the answer to the question “Should I Refinance” is yes. How ridiculous does the two percent rule of mortgage refinancing seem now?

How to Pay Less for Your Next Mortgage

Most people overpay for their home loans because they pay too much for the mortgage broker. Your mortgage broker deserves to be paid for their work; however, many brokers take advantage of their customers with hidden markup and junk fees. And you thought answering the question “should I refinance” was hard enough right? Fortunately you don’t have to be a financial guru to avoid being taken advantage of when refinancing your home loan. The information and mortgage videos found on this website saves the average homeowner $1,000 per year from this markup and mortgage junk fees.

You can learn more about answering the question Should I Refinance for yourself while avoiding markup and mortgage junk fees by registering for my Underground Mortgage Videos. Here’s a sample showing you how this hidden markup of your interest rate drives up your mortgage payment unnecessarily.

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

Register today and you’ll get instant online access to my mortgage videos without downloading anything on your computer.

Mortgage Help for Homeowners

mortgagehelp Mortgage Help for HomeownersAre you considering mortgage refinancing this year? Worried about paying too much or taking out the wrong type of loan when refinancing?

It’s true that mortgage refinancing can save you thousands of dollars by lowering your monthly payment amount; however, there are a number of pitfalls that result in paying too much for your new home loan.

There is mortgage help for homeowners that will allow you to refinance without paying markup of your interest rate or junk fees to the broker or lender. Here are several tips to get you on the right track to saving thousands of dollars on your next mortgage loan.

Mortgage Help for Homeowners

If you’re refinancing your home mortgage loan there are several ways to overpay when taking out the new loan. Most of the junk fees and markup you will encounter come from the person arranging your mortgage and can be avoided if you find the right person to work with. Who is the right person to refinance your home mortgage loan? I’ll get to that in a minute but first I’ll tell you who it’s not…your bank or credit union. Many people think taking out a mortgage with your bank is the most convenient way of refinancing; while it’s true banks make it easy to take out a mortgage you are guaranteed to overpay with any bank or credit union and here’s why:

Real Estate Settlement Procedures Act

There is a bit of legislation in the United States called the Real Estate Settlement Procedures Act that protects homeowners from abusive lending practices by requiring mortgage brokers to disclose their markup and profit margins on your home loan. Sounds great right? There’s just one problem with fair lending laws in the United States, your bank and credit union are exempt from them when it comes to mortgage loans. That’s right; the Banking Lobby spent millions of dollars romancing Congress to be exempt from this legislation and succeeded in getting the laws changed so that your bank is exempt from RESPA legislation.

Because of this loophole in the Real Estate Settlement Procedures Act your bank or credit union is not required to tell you how much they’ve marked up your mortgage rate or how much profit they’re making off your home loan. If you refinance your mortgage with your bank you will pay too much…period.

Mortgage Broker Tricks

Now that you know banks are a bad idea for refinancing your home mortgage loan I should tell you that mortgage brokers aren’t much better as a whole. This doesn’t mean that you can’t find honest brokers to work with it just means you have to stay on your toes when shopping for the right broker to refinance your mortgage. Mortgage brokers are not exempt from RESPA legislation like your bank; however, they do have clever ways of disguising their markup and junk fees. Learn how to recognize mortgage broker tricks and you’ll be able to find an honest mortgage broker and save yourself thousands of dollars on your next home loan.

Mortgage Rate Markup

So what is this markup of your mortgage rate anyhow? Simply put your broker marks up your mortgage rate because the lender pays them a commission for locking and closing your loan with a higher than necessary mortgage rate. This fee is known as Yield Spread Premium and according to the government is responsible for homeowners in the United States overpaying sixteen billion dollars this year alone. How do you recognize Yield Spread Premium when refinancing your home mortgage loan? You won’t typically find it listed on your Good Faith Estimate because this document is little more than a marketing tool used to sell loans.

Your first opportunity to spot Yield Spread Premium when refinancing your home is when you lock in your mortgage rate and receive written confirmation from the lender. This confirmation must come from the lender and not your mortgage broker. Many dishonest mortgage brokers type up a rate lock confirmation on their company letterhead and try and pass it off as the lenders; if your mortgage broker does this they are simply trying to hide their markup of your mortgage rate. Many mortgage brokers will simply refuse to show you rate lock confirmation from the lender stating that the information is “proprietary” or “confidential” and that you cannot see it. Again, this is your broker’s boneheaded attempt to hide what they’ve done to your mortgage rate for a commission from the lender.

Why do mortgage lenders pay the broker a bonus for marking up your mortgage rate? Mortgage lenders make the majority of their profits by selling your loan to investors on the secondary market. Lenders know that mortgage loans with above market mortgage rates bring in premium profits. This is why the lender rewards mortgage brokers that overcharge their profits with Yield Spread Premium, often doubling, even tripling their commissions.

You Don’t Have to Overpay for Your Next Mortgage

Ignorance might be blissful but when it comes to your mortgage loan bliss will cost you thousands of dollars in unnecessary mortgage interest. Fortunately, avoiding this unnecessary markup of your mortgage interest rate is easier than you think. You simply have to find the right mortgage broker to refinance your home loan. It is possible to refinance your mortgage paying only a one percent origination fee without Yield Spread Premium from the lender. The trick is finding the right mortgage broker for the job.

How to Find the Right Mortgage Broker

What kind of car does your mortgage broker drive? Is it a Hummer H3 plastered with their company’s logo? I guarantee this broker is not the right person for the job. The ideal mortgage broker is a small time, self-employed broker that does not employ an expensive sales staff or posh office spaces. They most certainly do not drive a company Hummer. Find a self employed mortgage broker that works out of their home? Better Still. These self-employed mortgage brokers will not have the overhead expenses and will be much more likely to cut you a deal that does not include commission based markup of your mortgage rate.

You can learn more about refinancing your mortgage loan without paying junk fees to the lender or broker by registering for the videos found on this website. Register today and you’ll have immediate, online access to the videos and training materials that will show you step-by-step how to get the best deal on your next home loan.

Refinance Fees You Need to Avoid Today

mortgage broker Refinance Fees You Need to Avoid TodayIf you are in the process of refinancing your home mortgage and don’t want to overpay refinance fees when taking out a new loan, there are many junk fees you’ll need to avoid to ensure that you’re getting a good deal.

Most of the junk fees you’ll encounter when mortgage refinancing are from the person originating your loan and can be avoided if you know how. Here are several tips to insure you’re not overpaying refinance fees on your next mortgage loan.

Mortgage Loan Origination

What is mortgage loan origination anyhow? Can’t you just go to your bank or credit union and cut out the middleman when refinancing to get the best deal? You could go to your bank to refinance; however, because of a little known loophole in the Real Estate Settlement Procedures Act the bank can charge you the same fees you’ll pay with a mortgage broker and doesn’t even have to disclose them to you. That’s right, banks are the worst deal in mortgage loans thanks to the Banking Lobby which spent millions of dollars lobbying congress to be exempt from disclosure laws that protect homeowners from predatory lending practices.

Mortgage Broker Fees

Since banks are out of the picture due to unfair lending practices, the best option for your next mortgage loan is use a mortgage broker to arrange your loan for you. You don’t want just any mortgage broker since dishonest brokers pad their commissions with junk fees and mortgage rate markup; you’ll need to find an honest broke willing to work for a one percent origination fee…more on this later.

The first thing you need to know about refinance fees is that mortgage loans are retail products. The person arranging your loan is simply reselling loans from a wholesale lender for a commission. This commission comes from two sources: you and the mortgage lender. You’ll pay for mortgage loan origination by paying a flat origination fee. Ideally loan origination fees should only be one percent of your loan amount, which isn’t hard to negotiate; however, many mortgage brokers charge anywhere from two to five percent so you’ll want to be careful with this fee.

Yield Spread Premium

The second way mortgage brokers get a commission for their work is form the lender. Mortgage lenders pay a commission to the broker for locking and closing your loan with a higher than necessary interest rate. This markup of your mortgage rate creates a cash bonus for the broker for overcharging your and is known as Yield Spread Premium. If you want a good deal on your next mortgage loan you MUST avoid Yield Spread Premium or you’ll be thousands of dollars too much for as long as you keep the loan.

Yield Spread Premium sounds scary and most homeowners have never heard of the term however, like other mortgage garbage fees it’s not hard to avoid. When you negotiate a flat one percent origination fee without Yield Spread Premium you’ll be taking advantage of wholesale mortgage rates and saving thousands of dollars in mortgage interest. The mortgage videos on this website show you exactly how to do this in an easy to follow, step-by-step guide.

Junk Refinance Fees

There are a number of other refinance fees you’ll need to avoid that are pure garbage. If for instance your mortgage broker charges you a rate lock fee you’re probably dealing with a dishonest mortgage broker. There isn’t one single mortgage lender in the country that charges a fee for locking in your mortgage rate…this fee is pure garbage and headed right into your mortgage broker’s pocket if you agree to pay it. Other garbage refinance fees you should be on the lookout for include broker courier fees and loan processing fees.

You can learn more about refinance fees you need to avoid including strategies for refinancing your home loan with a wholesale mortgage rate by registering for my Underground Mortgage Videos available on this website. You’ll get immediate online access to the mortgage videos and all refinancing materials in our password protected member’s area.

Mortgage Refinancing Help

mortgage rate Mortgage Refinancing HelpToday’s post is short and to the point…

Here’s What I’ve Got

Six online videos you’ll you watch on your PC with just under an hour’s worth of content.

That’s less time than one episode of CSI out of your day…

Here’s What It Will Do For You

These videos will save you thousands of dollars every year by showing you how to refinance your home with a wholesale rate without paying garbage fees. You’ll get a list of recommended mortgage brokers in your area and a rate quote. The videos, resources, and live online support are yours free.

Here’s What You Should Do Next

Register for the videos by Clicking Here. Registration is fast and secure. In a matter of moments you’ll have full access to all of the videos, the list of recommended brokers in your area, and online support…all free.

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