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.

Refinance Mortgage Interest Rate

Are you searching the internet for a new Refinance Mortgage Interest Rate and want the best deal for your next home loan? There are several things you need to know about the ways your mortgage broker receives compensation for the work they do on your home loan to avoid paying too much. Here are some of my best tips to help you find the lowest Refinance Mortgage Interest Rate without paying unnecessary fees and markup.

Refinance Mortgage Interest Rate Markup

Did you know the person arranging your home loan can receive a commission for marking up your Refinance Mortgage Interest Rate? This commission based markup is paid in addition to the loan origination fees you’re already paying the broker. Many brokers will tell you not to worry about lender paid compensation because the fee isn’t coming out of your pocket; however, what the broker isn’t telling you is what this unnecessary fee does to your mortgage payment.

Yield Spread Premium Is Unwanted Markup

The commission paid by lenders for marking up your interest rate is called Yield Spread Premium. For every .25 percent you agree to overpay on your Refinance Mortgage Interest Rate the person arranging your home loan receives a commission paid by your lender of one percent on top of the origination fees you’re already paying. Mortgage lenders reward brokers for overcharging homeowners such as yourself because home loans with a higher than necessary Refinance Mortgage Interest Rate bring them a premium profit when your home loan is sold to investors on the secondary market.

Mortgage Rate Markup And Your Payment

How does agreeing to a higher than necessary Refinance Mortgage Interest Rate affect your monthly payment? Suppose for example you were refinancing your home for $275,000 and the broker quotes you a Refinance Mortgage Interest Rate of 6.5% charging you a loan origination fee of 1.5%. The loan origination fee alone will cost you $4,125 at closing. A reasonable amount to pay for loan origination is a flat one percent; however, the problem with this offer is what your broker isn’t telling you. What your broker isn’t telling you that you actually qualified for a 6.0% mortgage rate and they’ve marked it up to 6.5% to collect a fee of $8,250 from the lender at your expense.

How is this fee paid at your expense? Consider what this unnecessary markup of your mortgage rate does to your monthly payment. If you agree to the Refinance Mortgage Interest Rate at 6.5% your payment on a 30 year fixed rate loan will be $1,740 per month. If you had the home loan that you should have gotten at 6.0% your monthly payment would only be $1,648 per month. That’s a difference of $1,104 per year out of your pocket for no good reason. How can you avoid this unnecessary markup and put $1,100 per year back in your pocket? Check out my free underground mortgage videos and you’ll discover how to avoid this unnecessary markup and lender junk fees that are the sole reason 95% of your neighbors are paying too much for their home loans.

You can learn more about finding the lowest interest rate without paying junk fees with my free Underground Mortgage Videos.

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

Here’s a short video that exposes your lender’s dirty secret and shows why your most of your neighbors are overpaying for their home loans.

Home Refinance Rates Online

If you’re searching for the best home refinance rates there are several things you need to know to avoid making costly refinancing mistakes. What 90% of your neighbors don’t know when shopping home refinance rates is that the quotes you find online and get from your local mortgage company, bank, even your credit union have been marked up to boost their profits at your expense. If you want the best possible home refinance rates you need avoid this unnecessary markup. Here are several of my best tips for getting home refinance rates that haven’t been marked up to stuff someone else’s pockets with your money.

Finding The Best Home Refinance Rates

You don’t have to be a financial guru to get the best home refinance rates; you just need to know how to recognize junk fees and unnecessary markup. The approach most of your neighbors take to shopping for home refinance rates is to collect as many quotes as possible and go with whichever one is lowest. The problem with this is that all of the quotes you find have hidden markup built into them. Instead of taking the wrong approach like most of your neighbors did by shopping for mortgage quotes it makes more sense to find the right person to get you the best home refinance rates; here’s why.

Wholesale Mortgage Rates Will Save You Thousands

What is a wholesale mortgage rate? Wholesale rates are also known as par mortgage rates and have simply not been marked up for the broker’s commission and won’t cost you discount points. Many brokers will tell you that you can’t get wholesale mortgage rates; what they’re really telling you is that they’re not willing to give you one. Find the right mortgage broker and you’ll not only avoid unnecessary junk fees but you’ll be able to take advantage of the wholesale nature of home refinance rates.

How do you find the right broker for your next home loan? Forget brokers from large national chains and mortgage bankers. These lenders simply have too much overhead from employing an expensive sales staff and working out of posh office spaces. Your best bet for getting a wholesale mortgage rate is to find a local, self-employed broker working from home. These brokers are usually not only hones t and hard-working but willing to negotiate the kind of home refinance rate we’re talking about here.

How do you negotiate a wholesale mortgage rate with your broker? Start by telling potential mortgage brokers that you’ll pay a reasonable loan origination fee of one percent but will not go for any home loan that includes the broker’s commission in the mortgage rate. There are many honest brokers out there willing to work for these terms; you just need to find one licensed in your State. How about junk fees? Most of the junk fees you’ll encounter with our home refinance rate come from the broker.

Anything on your HUD-1 Statement that resembles a broker courier fee, POC or paid outside of closing charges, Yield Spread Premium, excessive processing fees, rate lock fee, administration fee or submission fee should send up red flags and warrant a serious discussion with your loan originator.

You can learn more about finding the right person to get you the best home refinance rates with my free Underground Mortgage Videos.

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

This short video exposes the mortgage industry’s dirty secret and the reason most of neighbors are paying too much for their mortgage loans.

Best Refinance Mortgage For Your Next Home Loan

Looking for the best refinance mortgage loan but are worried about paying junk fees? Little known junk fees and markup can quickly turn your best refinance mortgage into a sour deal unless you know how to avoid paying them. Here are several tips to help you get the best refinance mortgage possible without overpaying like nearly all of your neighbors.

Best Refinance Mortgage Online

Rate quotes on the web are easy to find; everyone claims to have the lowest rates but how do you know which rates have been marked up for the broker’s commission and what about those junk fees? Most of your neighbors make the mistake of allowing the broker to markup up their interest rate for broker fees rather than paying the origination fees up front. Some of your neighbors didn’t even know the broker marked up their interest rate and paid the origination fee also. How can you avoid making the same mistakes your neighbors made? It starts by understanding how brokers and other loan originators are paid for arranging your home loan.

Mortgage Broker Compensation

There are several ways the person arranging your home loan is compensated for their work. It doesn’t matter if the person is a broker, an online mortgage site, or even your bank. Most loan originators charge a flat loan origination fee for their part in arranging your home loan. The loan origination fee can be as high as three percent with some brokers, even more; however, a reasonable amount to pay for the loan origination fee is one percent of your loan amount assuming the broker isn’t marking up your interest rate as well.

What About Mortgage Rate Markup?

Most people don’t know that brokers, banks, and other loan originators markup your best refinance mortgage to boost their profits at your expense. Agreeing to pay a higher than necessary mortgage rate means your monthly payment will be higher than it needs to be by as much as $1200 per year, even more in some cases. Here’s an example of how this mortgage broker “scam” works.

Suppose you’re refinancing your home for $225,000 and your broker quotes you an interest rate of 6.0%, charging you an origination fee of 1.5%. The origination fee alone will cost you $3,375 at closing; however, what your broker isn’t telling you is that you qualified for a 5.5% mortgage rate and they marked it up to 6.0% to get a second commission at your expense. This second commission is called Yield Spread Premium and this year according to the Secretary of Housing and Urban development will cost homeowners in the United Sates sixteen billion dollars unnecessarily.

Brokers and other loan originators have a knack for explaining away this fee. They’ll tell you since your lender pays the fee you shouldn’t worry about it…after all it’s not coming out of your pocket right? Wrong. The fact of the matter is that this unnecessary bump in your mortgage rate drives your monthly payment up and that IS cash out of your pocket. Here’s an example to illustrate just how much cash.

The Effects of Yield Spread Premium on Your Best Refinance Mortgage

Getting back to our previous example of refinancing your home for $225,000 at 6.0% your monthly payment on a fixed 30 year mortgage would be $1,350 per month. If you had the interest rate that you should have gotten your payment would only be $1,277. That’s a savings of $876 per year! Is saving that much money on your next home loan worth 45 minutes of your time to get your best refinance mortgage? Check out my free Underground Mortgage Videos and you’ll discover how to avoid unnecessary Yield Spread Premium and junk fees on your next home loan.

You can learn more about finding the best refinance mortgage without paying Junk Fees with my free Underground Mortgage Videos.

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

Here’s a short video that’ll show you how to avoid unnecessary markup of your interest rate and other junk fees lenders use to boost their profits at your expense.

Lowest Mortgage Rate Refinance

If you’re considering a new home loan you might be wondering how to get the lowest mortgage rate refinance. Refinancing your home is easy; however, avoiding unnecessary fees and markup is difficult unless you know what you’re looking for. Here are several tips to help you get the lowest mortgage rate refinance without paying too much in the process.

How to Find the Lowest Mortgage Rate Refinance

Before you can avoid paying interest rate markup and junk fees you need to understand how mortgage brokers are compensated for arranging your home loan. Brokers receive compensation from two sources: you and your lender. Pay close attention to your Good Faith Estimate and HUD-1 Statement and you’ll find a loan origination fee and Yield Spread Premium. The loan origination fee is straightforward; this is a fee you’ll pay at closing for the brokers work on your home loan. Yield Spread Premium is another story all together.

Mortgage Yield Spread Premium

Most of your neighbors have never heard of Yield Spread Premium, which is a shame because it costs the average homeowner as much as $1200 per year. That’s $1200 you could be keeping for a vacation or home improvements. So how does Yield Spread Premium work? It’s not a difficult concept to wrap your head around…lenders reward brokers who lock and close home loans with higher than necessary interest rates with a percentage of your loan amount called Yield Spread Premium.

More specifically, your broker pockets one percent of your home loan for every .25 percent they overcharge you. I say overcharge because you’re already paying the broker a perfectly reasonable origination fee for their work on your home loan. Anything they pocket at your expense beyond that is unnecessary…Period. Many brokers try and explain away Yield Spread Premium when questioned about the fee. They’ll tell you since it isn’t coming out of your pocket that you shouldn’t worry about it. Truth be told it IS coming out of your pocket with a higher than necessary mortgage payment.

Others discount Yield Spread Premium because changes to the Real Estate Settlement Procedures Act in 2010 require brokers to disclose it along with their origination fee. This doesn’t help anyone because shady brokers will go on explaining the fee away just like they were before. Let’s face it; anything that drives up your interest rate is going to take more money out of your pocket. So how do you avoid Yield Spread Premium?

How to Get the Lowest Mortgage Rate Refinance

What you want for your next home loan is a wholesale or par interest rate. Wholesale home loans aren’t difficult to get despite what many brokers will tell you. All wholesale mortgage means is that you’re getting an interest rate that hasn’t been marked up for Yield Spread Premium and you don’t have to pay discount points to get it. Getting the lowest mortgage rate refinance is easier than you think; you don’t have to be a financial guru or have connections to pull it of…you just need to find the right sort of broker.

You can learn more about finding the right mortgage broker to get you a wholesale rate with my free Underground Mortgage Videos.

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

This short video exposes your lender’s dirty little secret and shows why nearly all of your neighbors pay too much for their home loans.