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.
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.