I’ve been writing quite a bit about refinance mortgage rates lately because of all the questions I’ve been receiving. Many of my readers don’t know the best way of shopping for a home loan and jump on the first shiny offer that comes their way. The problem with this approach to refinance mortgage rates is that you’ll overpay every time thanks to unnecessary markup and junk fees. Want the best refinance mortgage rates for you next home loan? Here are some of my best tips to help you avoid falling into the same trap as many of your neighbors when refinancing your home.
Refinance Mortgage Rates Online
The internet is an excellent tool for comparing mortgage offers from the convenience of your home computer. The problem with the mortgage rate quotes that you get online, even the ones from local brick and mortar mortgage companies, is that they all have been marked up to create a profit for someone at your expense. If you want the best possible refinance mortgage rates for your next home loan you must avoid this unwanted and unnecessary markup. If the prospect of refinance mortgage rates and unwanted markup sounds discouraging to you, never fear. You don’t have to be a financial guru to get a home loan without this unnecessary markup; you just need to know how to shop.
Unwanted Markup of Your Refinance Mortgage Rates
What is this unnecessary markup of your refinance mortgage rates? Simply put, the person arranging your home loan receives a fee from the lender for locking and closing your home loan with a higher than necessary interest rate. Lenders pay this fee on top of the loan origination fee you’re already paying because your lender knows that home loans with higher than necessary interest rates bring them a premium profit when your loan is sold to investors on the secondary market. This unwanted interest rate markup results in a higher than necessary payment and less cash in your pocket at the end of the month.
So how do you avoid this unwanted markup of your refinance mortgage rates? You can pay less for your next home loan simply by changing the way you shop for loan offers. Instead of comparing Good Faith Estimates until you’re cross-eyed from trying to pick the one with the lowest rates and fees you want to shop for the right person to arrange your next home loan. Once you’ve found the right person you’ll be able to take advantage of the wholesale nature of mortgage rates while avoiding lender junk fees.
Avoid Unnecessary Yield Spread Premium
How do you find the right person to arrange your next home loan? Start by telling potential mortgage brokers that you understand how the markup of refinance mortgage rates known as Yield Spread Premium works and will not accept any loan that includes the markup. Tell them that you will pay a reasonable origination fee for their services of one percent and you’ll be on your way to saving as much as $1200 per year on your next home loan.
You can find out more about getting the lowest possible refinance mortgage rates by checking out my free Underground Mortgage Videos.
Here’s a short video exposing how unnecessary markup known as Yield Spread Premium is fleecing American homeowners out of sixteen billion dollars every year and how you can avoid it.
A you combing the Internet for the best refinance rates online only to find junk fees and empty promises? The web can be an excellent resource for comparing refinance rates online; however, nearly all of the mortgage offers you find online include unnecessary markup for someone’s bloated commission. Here are several of my best mortgage tips to help you make sense of refinance rates online and spot a good offer when you find one.
Comparing Refinance Rates Online
You probably approach mortgage shopping the same way as many of your neighbors, collecting Good Faith Estimates and rate quotes from various websites you encounter online. What you may not know about the Good Faith Estimates and rate quotes you collect on and offline is that they all include unnecessary markup and fees to create an “extra” commission for someone at your expense.
Yes, I am referring to the so called “lender paid” compensation that many mortgage brokers are quick to point out isn’t coming out of your pocket. Au contraire, what you need to know is why your lender would pay the mortgage broker or website a fee for your loan. After all you’re paying this person a perfectly reasonable origination fee for their services in arranging your home loan, why would the mortgage lender pay extra on top? The answer lies in what’s in it for mortgage lenders. You see, these mortgage lenders make the majority of their profit selling your loan to various investors on the secondary mortgage market. These investors pay top dollar for mortgage loans with higher than necessary mortgage rates. Because of this premium mortgage lenders reward mortgage brokers and companies that lock and close their home loans with higher than necessary mortgage rates which results in a higher than necessary mortgage payment for you.
Mortgage Yield Spread Premium
This commission driven markup of your mortgage rate is known in the business as Yield Spread Premium. For every .25% that you unknowingly agree to overpay the person or website arranging your loan pockets an additional one percent of your home loan amount. This is paid of course in addition to the loan origination fee that they’re probably also overcharging you. How common do you think this practice of mortgage rate inflation for hire is today? It’s so widespread that nearly every single one of your neighbors is currently paying too much for their home loan and so bad that according to the Secretary of Housing and Urban Development American homeowners will overpay sixteen billion dollars this year alone. Let your neighbors pay this; you’ve got better things to do with your money.
Comparing Refinance Rates The Right Way
Collecting mortgage rate quotes from dozens of mortgage brokers and websites will only get you a bunch of marked up, overpriced home loans. The secret to getting the lowest mortgage rates, also known as wholesale or par mortgage rates is to find the right person to originate your home loan. Once you’ve found the right person to arrange your mortgage the unnecessary markup and junk fees take care of themselves.
Who’s the right person to arrange your next home loan? I can tell you for starters who the right person isn’t. Banks for one are the wrong people because they don’t play by the same rules as other mortgage originators thanks to a loophole in disclosure laws. Mortgage brokers that employ expensive sales staff and work out of posh office spaces aren’t going to be willing to negotiate the kind of deal you’re looking for because of their costly overhead. What about the mortgage broker with their face and/or logo splattered all over their brand new hummer? Forget about it, how do you think they paid for that hummer? Not by helping homeowners like you secure honest financing for their homes you can be sure of that…
You can learn more about finding the right person to arrange your next home mortgage loan without paying unnecessary markup or junk fees for someone’s commission by checking out my free underground mortgage refinancing videos.
Here’s a sample of what you’ll get when you register today…this module is about your mortgage lender’s dirty secret and why 90% of your neighbors today pay too much for their home loans.
If you’re in the process of shopping for a home loan you may be searching online for the best refinance mortgage interest rate. Getting the lowest possible mortgage rate means understanding how mortgage interest rates work as well as how mortgage brokers are compensated for the loans they close. Here are several of my best mortgage shopping tips to help you get the best refinance mortgage interest rate for your next home loan.
Refinance Mortgage Interest Rate Shopping
What’s the best way to shop for a home loan when refinancing? Is it beating the pavement collecting Good Faith Estimates from every Mortgage Company and Internet mortgage site out there picking the one with the lowest fees and rates? How do you compare loan offers ensuring that you’ll recognize the best deal when you find it? This is how most homeowners compare mortgage offers and the reason that nearly all of your neighbors are paying too much for their home mortgage loan. If you want the best refinance mortgage rate for your next home loan you’ll need to not only to compare apples to apples when shopping but find the right person to arrange your home loan without marking up your mortgage rate or charging you junk fees.
Mortgage Loan Originators
Finding the right person to arrange your home loan is the most important aspect of mortgage shopping. Find the right person to refinance your home and you’ll not only get the lowest mortgage rate but you’ll avoid junk fees in the process. So how do you find the right person to arrange your next home loan? Before you can find the right person to arrange your home loan you’ll need to understand how loan originators are compensated for their work. What are mortgage loan originators? Anyone that arranges your mortgage is a loan originator…this could be a mortgage company, mortgage broker or mortgage banker. Each type of loan originator has pros and cons; however, only mortgage brokers have access to and offer wholesale mortgage rates to their customers. If you want the lowest refinance mortgage interest rate you’ll need to find the right mortgage broker for the job.
Mortgage Broker Fees
Mortgage brokers are compensated in several ways for the work they do arranging your home loan. The first and most obvious way is the loan origination fee you’ll find on your Good Faith Estimate. This loan origination fee is a percentage of your loan amount that you’ll pay at closing for the mortgage broker’s work. The second and often hidden fee your mortgage broker receives is known as Yield Spread Premium. This is a fee paid by the lender when your mortgage broker locks and closes your home loan with a higher than necessary refinance mortgage interest rate. The final mortgage broker fees you’ll encounter are the junk fees the wrong mortgage broker will try and slip past you.
Best Refinance Mortgage Interest Rate
If you want the best mortgage rate for your next home loan you’ll need to find a mortgage broker willing to work for a flat origination fee without taking Yield Spread Premium on your loan. Mortgage rates that do not include Yield Spread Premium or discount points are called “Par” mortgage rates and are the lowest refinance mortgage interest rate you can get. How do you get a par mortgage rate when refinancing your home? Start by telling potential mortgage brokers that you understand how Yield Spread Premium works and will not accept any mortgage rate that has been marked up for this fee. Tell your mortgage broker you will pay a reasonable fee for loan origination; one percent is a perfectly reasonable mortgage broker fee for arranging your mortgage loan.
You can learn more about getting the best Refinance Mortgage Interest Rate without Yield Spread Premium or mortgage junk fees by checking out my free Underground Mortgage Videos.
Here’s a sample of what you’ll get when you sign up…this module is about your lender’s dirty little secret when it comes to your refinance mortgage interest rate. Sign up for your free mortgage refinancing videos today while this is still a free offer…
If you’re in the market to refinance your home loan and want to know if it’s worth your time and money there are several things you’ll want to consider. There is an old wives’ tale that says you should never refinance your home unless the new mortgage rate is at least percent lower than your existing mortgage rate. Consider this so called “two percent rule” of mortgage refinancing really bad advice. If you’re looking for an answer to the question “Should I Refinance My Mortgage” and want to do it with the lowest possible mortgage rate you’ll want better advice than the two percent rule. Here are several of my best refinancing tips to help you answer the question “Should I Refinance My Mortgage” and then get the best mortgage rate without paying junk fees when you’re ready to do it.
Should You Refinance Your Home?
The most common reason for refinancing is to get a lower mortgage rate and save money by lowering your monthly payment. There are reasons for refinancing with a higher mortgage rate, if you are consolidating a first and second mortgage your new rate may be slightly higher than the existing mortgage rate on your primary home loan. This is also true if you’re are refinancing your home and taking cash back for any reason at closing. As you can see the two percent rule doesn’t make sense in either one of these examples.
If you’re considering refinancing your home loan to take advantage of a lower mortgage rate it makes more sense to base your decision on a cost/savings basis rather than the bad advice of others. You can do this for yourself using a simple mortgage calculator to determine what your monthly payment will be with your new (lower) mortgage rate. Once you know the payment, make sure you’ve factored in taxes and insurance into your calculation, you can easily determine how long it will cost you to recoup your expenses from refinancing your home and if it makes sense for you to refinance with that mortgage rate. To calculate this divide the total costs of refinancing your home by how much lower your monthly payment will be with the new loan. This will tell you the number of months it will take you to recoup your expenses from refinancing and benefit from the savings of the new home loan.
Mortgage Refinancing Expenses
How much will it cost you to refinance your mortgage if you decide to go through with it? Every mortgage loan has closing costs of some kind. If you are refinancing with a traditional 15 or 30 year mortgage loan you can expect to pay many of the same fees you paid when you purchased your home. These closing costs include discount points if applicable, origination fees, processing fees, title fees, attorney fees if applicable, any number of third party fees, and of course the junk fees your mortgage broker and lender try and slip past you. If you decide mortgage refinancing makes sense in your situation you’ll want to minimize unnecessary junk fees including the hidden markup of your mortgage rate. If you’re new to the mortgage game you might find this a difficult task as most of the documents provided to you by the mortgage broker or lender are more about marketing overpriced home loans than honestly disclosing fees and closing costs on your new loan.
Everyone’s trying to make a buck at your expense when refinancing your home loan. If you approach the process with this mindset you can avoid many unnecessary fees; however, when it comes to the hidden markup of your mortgage rate you’re going need help arranging your home loan. Find the right person to arrange your next home loan and you’ll not only walk away from the table with a wholesale mortgage rate but you’ll avoid the junk fees that nearly all of your neighbors waste their money on when refinancing and there’s where my Underground Mortgage Videos can help. These videos are free and will show you how to avoid the unnecessary hidden markup of your mortgage rate while avoiding junk fees.
You an learn more about refinancing your home without paying mortgage junk fees or hidden markup by checking out my free Underground Mortgage Videos. You’ll get strategies for exploiting little known mortgage refinancing loopholes that will save you $1200 per year or more.
Here’s a sample of what you’ll get today when you sign up for my free refinancing videos. This video is about the hidden commission based markup of your mortgage rate that cost you hundreds of dollars per month unnecessarily.