Updated Loan Depot Review

loandepot Updated Loan Depot ReviewAre you considering Loan Depot for a purchase or mortgage refinance loan? How does Loan Depot compare to the best mortgage lenders? Here’s my unbiased review of Loan Depot services, interest rates and fees.

Loan Depot

Loan Depot is an online direct mortgage lender.

Should you trust Loan Depot with your next home mortgage?

Rating by Robert Regehr: 1.0 stars
starfull Updated Loan Depot Review

Loan Depot Profile

Claiming to be the pioneers of direct lending, they have no problem telling you they have the lowest purchase and refinance rates and fees without publishing anything on their website. The site is little more than a sales-brochure promoting their mortgage products.

Loan Depot Contact Information

Mailing Address:

26642 Towne Centre Drive
Foothill Ranch, CA 92610

Phone:

(888) 337-6888

Online:

http://www.loandepot.com

Loan Depot Review

Direct lenders fund their own home loans allowing them to take an advantage of a loophole in the Real Estate Settlement Procedures Act. My biggest problem with this lender is that they do not disclose any fees or publish interest rates on the site.

The only thing I could find on the website was a video about the rate lock deposit. The fees you pay at closing including the origination fee are one of the most important aspects of your home loan. If you’re not able to break even recouping your out-of-pocket expenses you’ll be losing money no matter how great your mortgage rates.

Do you have an opinion or an experience with this lender that you’d like to share? Please leave a comment below!

Common junk fees include application, processing, rate lock and courier fees. The less you pay at closing the more benefit you’ll get from a lower payment amount. You can learn more about getting the best deal on your next home loan by checking out my free Underground Mortgage Videos.

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Check out my free Underground Mortgage Refinancing Videos and you’ll discover how easy it is to save thousands of dollars getting the best refinance rates without paying unnecessary markup or lender junk fees.

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  • Free Underground Mortgage Videos

Here’s a sample to get you started paying less for the loan origination fee from today’s best mortgage lenders…

Is Mortgage Refinancing Your New Years Resolution?

If mortgage refinancing is part of your resolution for the New Year I’m sure doing it right is just as important to you as getting it done. While it’s true that mortgage refinancing can save you thousands of dollars by lowering your payments, it can also cost you thousands of dollars in hidden markup and junk fees if you go about it the wrong way. Here are several of my best tips to help you take control of your finances in the New Year with mortgage refinancing without junk fees or hidden markup. (Don’t worry I’m not here to try and sell you a home loan today; in fact, you’ll find everything on this website is free)

Mortgage Refinancing in the New Year

You’ve probably heard that many of the financial analysts are predicting that mortgage rates will inch up during the New Year; however, there are still opportunities for the financially savvy homeowner to save a boatload of cash with a new home loan. In fact, if you’re smart about mortgage refinancing you can get the same if not lower mortgage rates than many of your neighbors did for their home loans last year.

The reason your neighbors paid too much for their home loans when mortgage refinancing is due to hidden markup for a little known fee called Yield Spread Premium. Don’t sweat it if you’ve never heard of Yield Spread Premium, 95% of your neighbors haven’t either which is why they’re paying too much for their home loans. This hidden markup is so bad, that according to the Secretary of Housing and Urban Development, homeowners in the United States (your neighbors) will overpay sixteen billion dollars in the New Year for their mortgage loans.

Obviously you don’t want to be part of this statistic and you’re probably thinking to yourself “get to the point already” so here’s the simple truth you need to know when mortgage refinancing.

How to Avoid Hidden Markup and Mortgage Junk Fees

The reason your neighbors are all paying too much for their home loans is because they went shopping for a new home loan and not the right person to arrange mortgage refinancing. Think about it like this: when you go shopping for a kitchen appliance you check out the Sunday ads and the big box stores to shop around for the lowest price right? If you approach your mortgage refinancing in this way you’re simply going to end up with the best of the worst home loans out there. This is because comparison shoppers always get to compare home loans that include hidden markup for Yield Spread Premium. Back to Yield Spread Premium again, what is it you ask?

Simply put, mortgage Yield Spread Premium is a fee, think of it as a kickback, paid to the person arranging your mortgage refinancing for locking and closing the new home loan with a higher than necessary mortgage rate. I say higher than necessary because you’re already paying the person arranging your new home loan a perfectly reasonable loan origination fee so they have no business marking up your mortgage rate for a second, hidden commission from your lender.

This is why I say it’s so important to find the right person to arrange your mortgage refinancing than comparison-shopping home loan offers. So how do you find the right person for the job? It takes a bit of legwork on your part but if you go about it the right way you can slash $1,200 or more from your mortgage payments every single you’re paying on the loan.

How to Find the Right Person to Arrange Your Next Home Loan

Before you can find the right person to arrange mortgage refinancing in the New Year you’ll need to know who the right person is not. If you want the lowest possible mortgage rates without hidden markup you’ll need to stay away from banks. The reason I never recommend anyone take out a home mortgage loan from their bank is because of a gaping hole in the Real Estate Settlement Procedures Act (RESPA), which was intended to protect you and your neighbors from predatory lending practices like collecting Yield Spread Premium.

RESPA wasn’t always full of holes and almost did its job protecting the American public; however, the Banking Lobby spent millions of dollars lobbying Congress to have the law changed to exclude banks, and in the early 90s they succeeded. Your bank is only required to give you an Annual Percentage Rate (APR) based on a fictitious Good Faith Estimate and is not required to show any of their markup or profit margin on your new home loan.

If you’re considering mortgage refinancing with your bank, why would you trust your home to any lender that doesn’t have to play by the rules? I’m not a mortgage broker and I know that many of them are every bit as dirty as the worst banks (Wells Fargo and Bank of America come to mind at the top of the predatory lender list), however, mortgage brokers are not exempt from the law and recent changes in 2010 require them to show any Yield Spread Premium they receive along with your mortgage origination fee.

This is why I say it’s so important to shop for the right person to arrange your next home loan when mortgage refinancing than shopping for a home loan like it’s an appliance for your kitchen. How do you find the right mortgage broker for the job? Start by telling potential brokers that you understand how Yield Spread Premium works and will not accept any home loan that includes the markup. Offer to pay a flat fee for loan origination of one percent of your home loan amount and you’ll be well on your way to bagging a wholesale mortgage rate for your next home loan.

You can learn more about mortgage refinancing with wholesale rates by checking out my free Underground Mortgage Refinancing Videos.

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Here’s a quick sample to get you started by exposing the mortgage industry’s dirty secret.

Home Mortgage Refinance Calculator Tips

Are you looking for the lowest interest rate, fees, and payment when refinancing your home mortgage loan? A home mortgage refinance calculator makes it easy to figure out how much your new payment will be; however, it won’t show you hidden markup that results in overpaying thousands of dollars. If you want the lowest payment a home mortgage refinance calculator is a useful tool only if you can avoid this hidden markup and junk fees. Here are several tips to help you get the lowest payment for next home mortgage loan.

How to Use a Home Mortgage Refinance Calculator

Using a home mortgage refinance calculator to evaluate mortgage quotes is simple. Plug in the amount you are refinancing, your mortgage interest rate, and the duration of your home loan and you’ll have your new payment at the click of your mouse. What you should know about this payment amount is that includes markup for a fee known as Yield Spread Premium. This fee is paid by lenders to any loan originator who locks and closes your home loan with a higher than necessary interest rate. This is the markup that no calculator will help you avoid.

Avoiding Hidden Markup of Your Interest Rate

If you want the lowest payment for your next loan before using that home mortgage refinance calculator you need to find quotes that haven’t been marked up for someone’s commission. First of all, don’t get me wrong, home loan originators deserve to be paid for their work like everyone else… and that is what your loan origination fee is for. A reasonable fee to pay for loan origination is one percent of your loan amount assuming the person arranging your fee has not marked up your interest rate for Yield Spread Premium.

How does this hidden markup interest rate for a commission work? For every quarter point that your loan originator marks up your interest rate the lender pays them one percent of your loan amount as this extra commission known as Yield Spread Premium. Your loan originator doubles, even triples their commission with Yield Spread Premium and you get stuck with a monthly payment that is a hundred dollars or more than it should be.

How to Get Wholesale Home Loan Interest Rates

How can you avoid this unnecessary markup of your home loan interest rate? Instead of relying on that home mortgage refinance calculator to tell you if your quote is a good deal you can save yourself thousands of dollars simply by finding the right person to arrange your next home loan. Start by telling potential originators that you’ll pay them a reasonable fee for loan origination but will not accept any mortgage quote includes markup for Yield Spread Premium. Once you’ve got mortgage quotes that haven’t been marked up for Yield Spread Premium you can run them through your home mortgage refinance calculator to determine how much you’ll be saving with a wholesale mortgage rate.

You can learn more about using a home mortgage refinance calculator to score yourself a wholesale home loan interest rate 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 on the path to a wholesale rate today.

Refinance Fees

If you are in the process of refinancing your home mortgage one of your concerns is undoubtedly paying too much in refinance fees for the new mortgage loan.

How do you know which fees are garbage headed straight for your mortgage brokers pocket and which ones are absolutely necessary? Here are several tips to help you avoid paying too much for your next home loan.

Refinance Fees 101

The first thing you need to know about the fees you’ll be charged when refinancing isn’t exactly a fee; however, it is the single reason most homeowners overpay for their loans. Did you know that the person arranging your loan marks up your mortgage rate for a commission? This is almost always done without your knowledge or consent. The commission generated by this markup is known as Yield Spread Premium and is a percentage of your loan created when the broker locks and closes your loan with a higher than market interest rate. Lenders reward mortgage brokers with a commission because loans with higher than market rates bring in higher profits when sold to investors on the secondary mortgage market.

The fact that you know about Yield Spread Premium gives you a huge advantage over most homeowners. Avoiding this unnecessary markup isn’t as tricky as you might think…once you know how to recognize the markup in your loan documents you can find mortgage brokers willing to work for a flat origination fee as low as one percent of your loan amount.

How to Spot Mortgage Rate Markup

The first opportunity you’ll have to spot this unnecessary markup of your mortgage interest rate does not come with the Good Faith Estimate as you might think but from the lender’s rate lock confirmation. The Good Faith Estimates you receive when shopping for a mortgage are little more than a marketing tool used to draw you in to overpriced loan offerings; however, rate lock confirmation from the lender tells the real story about your loan.

First of all, make sure the lock confirmation you get is in writing and comes from the lender, not the broker. Some dishonest mortgage companies and brokers will try and pass off a written lock confirmation on their own company letterhead…if it isn’t in writing from the lender your rate lock is meaningless. Once you have written confirmation from the lender there are several important items disclosed on the lock. Your mortgage rate, Yield Spread Premium, points, and the duration of your lock are all detailed on the lender’s lock confirmation.

Mortgage Junk Fee

Never agree to pay a fee to lock in your interest rate. Mortgage lenders do not charge rate lock fees. This fee to lock your mortgage rate is pure garbage. If you agree to pay a rate lock fee it will go directly into your mortgage broker’s pocket.

You can learn more about mortgage refinance fees you need to avoid including strategies for refinancing with a wholesale mortgage rate by registering for my Underground Mortgage Videos.

Great Mortgage Refinancing for Dummies

lowest mortgage rate Great Mortgage Refinancing for Dummies

Refinancing your home loan allows you to take advantage of low mortgage rates as well as change the terms of your existing mortgage loan.

Before you decide to refinance your existing mortgage it is important to determine how long it will take you to recoup the expenses of refinancing your home loan. Here are several tips to help you decide if mortgage refinancing is right for you.

Mortgage Refinancing for Dummies

The process of refinancing is simply taking the balance you owe on your existing mortgage and paying it off with a new mortgage. You may have the opportunity to borrow against your home’s existing equity and get cash back in the process. Keep in mind that there are fees that you will be required to pay and there could be a penalty for paying off your existing loan early. You should examine your existing mortgage contract for a prepayment penalty prior to applying for a new mortgage loan.

Closing costs are the fees you will be required to pay when refinancing and you will encounter many of the same fees you paid when you first purchased your home. There are banks boasting about their “no fee, no closing cost” mortgage loans; however, you should know that you are trading a higher mortgage rate which will drive up your payment amount for these closing costs.

What About Mortgage Points?

Paying “discount” points on your new mortgage allows you a way to buy down your mortgage rate. One point is the equivalent of one percent of your mortgage amount paid at closing. Suppose for instance you are required to pay two points on a $150,000 mortgage, this means you will have to fork over $4,500 at closing to get the interest rate promised to you. Should you pay discount points when refinancing? In most cases no. Mortgage rates are at historically low levels and for most homeowners it doesn’t make sense paying for a mortgage rate that another lender would be willing to give you.

Types and Term Length of Mortgage Loans

Refinancing your home loan gives you the opportunity to change the term length and type of mortgage rate for your loan. Mortgage rates come in three basic varieties: fixed, adjustable, and hybrid. Hybrid mortgage loans are a combination of fixed and adjustable rate mortgages and are best suited for homeowners who only plan on keeping their homes for a short while and want to minimize their risk of payment shock from an Adjustable Rate Mortgage.

Refinancing your existing mortgage means choosing the right type of interest rate, term length, and loan originator for the new loan. Most homeowners overlook the importance of choosing the right person to arrange the new loan as this person sets their fee and commission based markup of your mortgage rate. Choosing the right mortgage broker will make or break your new home loan and could save you thousands of dollars every year you keep the loan.

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You can learn more about paying less for your next home loan by checking out my free Underground Mortgage Videos.

httpv://www.youtube.com/watch?v=be9md0A0_2c
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Here’s a quick sample to help you pay less at closing for current mortgage rates