Get the Lowest Mortgage Rates Now

You’re in the market to refinance and you want the lowest mortgage rates for your next home loan right? Interest rates may be advertised at five year historical lows but that doesn’t mean you’ll walk away from closing with the lowest mortgage rates. Did you know that loan originators jack up their lowest mortgage rates to pocket a commission from the lender while lacing your home loan with junk fees? Here are several of my best mortgage tips to help you find the lowest mortgage rates without throwing your hard-earned cash away on junk fees and unnecessary markup.

Lowest Mortgage Rates Online

Google makes it easy to find mortgage quotes from dozens of lenders in a hurry. The problem with these quotes is that they all include markup intended to generate a commission for the person arranging your home loan. Don’t get me wrong, there’s nothing wrong with the person behind your mortgage getting paid for their work. The problem is that you’re already paying this person a perfectly reasonable origination fee AND they’re helping themselves to a commission from the lender at your expense.

The Mortgage Industry’s Dirty Little Secret

You’ve just stumbled on the mortgage industry’s dirty laundry. Did you know that mortgage lenders reward brokers and other loan originators with a fee for overcharging you? That’s right, for every quarter point that you agree to overpay the person arranging your loan pockets a whopping one percent of your home loan amount. This is on top of the one percent plus you’re already paying them for setting up your mortgage, all the while thinking you’re getting the lowest mortgage rates. How does this heinous markup of your mortgage rate work? It’s a pretty simple concept to wrap your head around and learning to recognize it will save you thousands of dollars.

Yield Spread Premium in Action

The mortgage fat cats have a term for the fee collected for the unnecessary markup of your lowest mortgage rates. They call it Yield Spread Premium. Basically, any loan originator that locks and closes home loans with higher than necessary interest rates can collect Yield Spread Premium. Sure, changes to the 2010 RESPA laws require them to disclose Yield Spread Premium with their origination fee; however, the shady ones have clever of ways explaining it away. They’ll tell you not to worry about this fee since it’s not coming out of your pocket and the fact that lender is paying it is keeping your costs down.

Poppycock! Don’t you just love that word? People don’t use it enough in everyday speech. What your broker isn’t telling you is why lenders are paying this fee and what it does to your monthly payment. Lenders reward loan originators with Yield Spread Premium because they know that home loans with higher than necessary interest rates bring them a premium profit when your loan is sold to investors. Your broker doubles, even triples their commission and you get stuck paying extra every month. Here’s an example to illustrate my point.

Case Study: Overpaying for Your Home Loan

Here’s an example of what you don’t want to do when trying to refinance with the lowest mortgage rates. Suppose you’re refinancing your home for $315,000. Your broker quotes you a rate of 5.25 percent and charges you 1.5 percent for loan origination. This means you’ll fork over $4,725 at closing when you should only be paying one percent or $3,150 for the origination fee. At 5.25 percent on a thirty-year fixed rate mortgage your payment will be $1,740 per month.

What the scoundrel isn’t telling you is that you actually qualified for a mortgage rate of 4.75 percent. Your broker marked up the lowest mortgage rates to pocket two percent of Yield Spread Premium from the lender…that’s $6,300 more on top of the $3,150 you’re already overpaying him. Ready to get angry? If you had the mortgage rate you deserve your payment would only be $1640 per month. That’s $1200 you’re throwing away every year…$1200 cash you could be using for other things.

The good news today is that you can avoid this unnecessary markup of your lowest mortgage rates without overpaying the origination fee or throwing your money away on junk fees.

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

Here’s a sample from my free Underground Mortgage Refinancing Videos that shows you step-by-step how to pay less for your next home loan.

Should I Refinance My Mortgage This Year?

If you’re considering a new home loan and are asking the question “Should I Refinance My Mortgage” there are several things you need to know about junk fees and markup. It’s true mortgage rates are at historically low levels and the media is beating their refinancing drum; however, what you’re not hearing about are the ways lenders and loan originators take advantage of homeowners. Here are several tips to help you answer the question “Should I refinance My Mortgage” without losing money in the process.

Should I Refinance My Mortgage Pros & Cons

Like most homeowners you’re probably considering refinancing to save money with a lower payment. It makes sense, lower your interest rate and your monthly payment goes down. The only problem is that it costs money to refinance your home and it’s smart to factor in this expense before answering the question should I refinance my mortgage for yourself. The fees you’ll be required to pay when refinancing include closing costs and origination fees, some of which are legit and some are pure garbage.

Should I Refinance My Mortgage: The Two Percent Rule

If you do any amount of research online when answering the question “Should I Refinance My Mortgage” you’re likely to encounter the two percent rule. Now whoever coined the “Two Percent Rule” was truly a bonehead as this “rule” states that you should never refinance your mortgage unless your new mortgage rate is at least two percent lower than your existing home loan’s rate. If this were good advice practically no one would be refinancing and we wouldn’t be here today. Instead of relying on some bonehead’s epically bad advice it makes more sense to base your answer to the question “Should I Refinance My Mortgage” on a cost/savings basis.

Evaluating your refinancing options like this tells you how long it will take to recoup your expenses and makes it easier to recognize and avoid junk fees. How do figure out how long it will take to recoup your expenses when refinancing? It’s easier than you think. First, figure out what your new monthly payment will be using a basic home mortgage refinance calculator. Subtract your new lower payment from your old payment and you’ve got your monthly savings with the new home loan. Next, total up all of your closing costs including any loan origination fees you’re paying the person arranging your new mortgage. Divide this total by your savings and Voila! you’ve got the number of months it will take you to recoup your expenses from taking out a new mortgage loan.

How to Maximize Your Savings When Refinancing

You can maximize your savings ensuring that it will take the least amount of time to recoup your expenses in two ways. First, get the lowest possible mortgage rate by avoiding your broker’s commission based markup of your mortgage rate. There’s a whole free video series available on this website on how to get the lowest possible mortgage rate when refinancing. Second, keep your loan origination fees as low as possible and weed out all of the unwanted junk fees from your closing costs. It’s not as hard as you think, in fact, following the system in my free Underground Mortgage Refinancing Videos will not only show you how to do all this but save you time in the process. You’ll keeps thousands of dollars of your hard earned cash and look like financial genius to your family and friends.

You can learn more about answering the question “Should I Refinance My Mortgage” by checking out my free Underground Mortgage Videos.

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

Here’s a quick sample to get you on track to cutting a hundred dollars of fat from your monthly payments. That’s $1200 a year you could be using for other things…

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.

Loan Origination Fee or Yield Spread Premium?

Paying closing costs when refinancing your home means you’re coughing up cash to pay the loan origination fee for your home mortgage. What about these banks and brokers that advertise no fee home loans? You’re probably asking what’s the catch, right? There are no free lunches when it comes to paying mortgage fees; here’s what you need to know about so called “no-fee” mortgage loans to help you avoid overpaying for your next home loan.

How Much is a Reasonable Loan Origination Fee?

Brokers and other loan originators deserve to be paid for their work. This doesn’t mean they should be taking advantage of their customers by charging an outrageous loan origination fee and taking a kickback from the mortgage lender at your expense. What’s a reasonable fee when refinancing your home? One percent of your home loan amount and not a penny more. This one percent loan origination fee assumes your broker isn’t taking Yield Spread Premium as well. Don’t worry if you’re not familiar with Yield Spread Premium, I’ll explain that in a moment.

Mortgage Broker Compensation

You already know that brokers and other loan originators are compensated by charging a loan origination fee, but did you know they’re also paid a fee by your lender for overcharging you? Brokers receive a fee known as Yield Spread Premium for locking and closing home loans with higher than necessary interest rates in addition to the origination fee they’re already charging you. Honest brokers explain your options as well as how this fee affects your home loan; however, many shady loan originators explain it away and tell you not to worry about it since it’s not coming out of your pocket.

How does Yield Spread Premium work? Your loan originator receives a fee of one percent of your loan amount for every .25 percent they markup your mortgage rate. Some homeowners trade paying the loan origination fee for Yield Spread Premium and some unknowingly pay both. What does allowing Yield Spread Premium on your home loan mean for your bottom line and does paying the loan origination fee up front have an advantage long term? Here’s an example to illustrate the pros and cons of both.

Loan Origination Fee vs. Yield Spread Premium

Suppose you’re refinancing your home for $350,000. Assuming you have an honest mortgage broker willing to work for a flat loan origination fee without taking Yield Spread Premium on your home loan the origination fee to refinance would be $3,500 and on a fixed, 30 year mortgage would get you an interest rate of 5.5%. What if you don’t have the $3,500 and take a 6.0% mortgage rate in exchange for a “no fee” home loan. The mortgage broker pockets 2% of your home loan amount in this example and walks away with $7,000 from the lender. You save $3,500 at closing and everyone wins right?

Not so fast. A simple mortgage calculator shows what this no origination fee mortgage loan will cost you in the long run. If you had paid the $3,500 origination fee at closing to get the 5.5% interest rate your payment on a fixed, 30 year mortgage would be $1,987. The no origination fee deal gets you a 6.0% interest rate with a monthly payment of $2,098 per month. That’s a difference of $1,332 per year. If you take the no fee option you’ll be paying the loan origination fee over and over again every three years! Save your money, just say no to Yield Spread Premium.

You can learn more about avoiding an unnecessary origination fee and markup 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 expensive mistakes nearly every one of your neighbors is paying too much for.

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.