How to Refinance a Mortgage

Would you like to know how to refinance a mortgage without paying hidden markup or junk fees? Did you know that 97% of your friends and neighbors are overpaying for their home loans because of hidden markup and lender junk fees? Once you know how to refinance a mortgage taking advantage of the wholesale nature of interest rates, you can avoid unnecessary markup and fees. Here are my best tips on how to refinance a mortgage without paying one cent more than is necessary.

How to Refinance a Mortgage Online

The Internet is a great tool for researching home loan offers and learning how to refinance a mortgage loan; however, the problem with all the quotes you receive online is that they include retail markup intended to create an extra commission for someone. The mortgage fat cats know this extra commission I’m referring to as Yield Spread Premium. Don’t worry if you’ve never heard of this fee, most people haven’t AND according to the HUD Secretary in the United States it’s responsible for homeowners overpaying sixteen billion dollars this year alone.

Learn how to refinance a mortgage with wholesale interest rates and you’ll save as much as $1200 a year for the entire duration of your home loan! Doing this is easier than you think; you don’t have to be a personal finance guru or have a relative in the biz to pull this off, you just have to find the right person to refinance your home loan without all the nonsense brokers pull to pad their commissions at your cost.

Mortgage Refinancing with Wholesale Rates

How to refinance a mortgage without overpaying? The first thing you’ll want to do is avoid paying for Yield Spread Premium. What is this fee lender’s pay for marking up your home loan? Simply put, Mortgage Yield Spread Premium is a fee even the best refinance company pays for locking and closing your home loan with a higher than necessary interest rate. I say this fee is unnecessary because you’re already paying the person arranging your home loan a perfectly reasonable loan origination fee for the work they do on your home loan. Did you know that Yield Spread Premium effectively doubles, even triples the commission they get for a few hours work they put into your mortgage refinancing?

How to Get Wholesale Interest Rates

Want to know how to refinance a mortgage with a wholesale rate? You’ve come to the right place… I already mentioned that instead of comparing loan offers into the wee hours of the morning (which is what your neighbors did and look where that got them) if you want to get wholesale rates you’ll need to find the right person to arrange your next home loan. Who is this person? For reasons that I’ll discuss in a later refinancing article I can tell you that this person does not work for your bank. The ideal person for arranging your mortgage refinancing is a self-employed mortgage broker working in your area. These brokers don’t have the overhead that even the best mortgage refinance companies have and are much more likely to negotiate the kind of deal I’m describing here.

Now that your learning how to refinance a mortgage without hidden markup you can get stated by telling prospective brokers that you understand how Mortgage Yield Spread Premium works and will not accept any home loan that includes the markup. Offer to pay a reasonable free for loan origination (one percent is perfectly reasonable) and you’ll be will on your way to securing a wholesale interest rate.

You can learn how to refinance a mortgage without overpaying one cent in detail by checking out my Underground Mortgage Refinancing Videos.


Here’s a quick sample to help you find the right person to arrange your next home loan.

Should I Refinance My Mortgage?

Are you considering refinancing your home loan but are sitting on the fence with the question Should I Refinance My Mortgage? There’s a lot of bad advice online when it comes to mortgage refinancing; however, answering this question for your self is easier thank you think. Here are several tips to help you answer the question “Should I Refinance My Mortgage” without paying for hidden markup and junk fees.

Should I Refinance My Mortgage This Year?

Many financial advisors will answer your question Should I Refinance My Mortgage with the two percent rule of mortgage refinancing. The two percent rule states that you should never consider mortgage refinancing unless the new interest rate is exactly two percent lower than your old interest rate. This is boneheaded advice on a number of different levels that I’ll show you in a moment.

Instead of relying on the two percent rule to decide if a new home loan is right for you it makes more sense to evaluate your options on a cost per savings basis. Consider first that it’s going to cost you money at closing to refinance your home loan. The largest of these is the loan origination fee paid to the person arranging your mortgage refinancing. Ideally you’ll pay one percent of your loan amount for loan origination to a broker that doesn’t accept lender paid compensation for marking up you interest rate; however, that’s a topic for another discussion.

Cost vs. Savings Mortgage Refinancing

Suppose for instance you are refinancing your home loan for $250,000. The existing interest rate is 6.75% and you’re currently paying $1,620 a month. The broker quotes you and interest rate of 6.0% with a loan origination fee of 1.5% which means you’ll be out of pocket for $3,750 at closing. According to the previously discussed two percent rule most financial advisors that subscribe to this “wives tale” will tell you not to refinance.

What happens if we throw caution to the wind and decide to go through with a new home loan? After paying your broker the $3,750 for arranging the new home loan your new payment will be $1,498. Don’t break out the champagne yet; you still have to recoup the $3,750 you paid the broker before you realize any savings from a new home loan. You can easily calculate how long this will take by dividing your closing costs by the difference in your new payment amount. In this example take the difference of your new payment amount $1,620 – $1,498= $122 per month and divide your closing costs by this amount. ($3,750 / 122 = 30 months)

Is a New Home Loan Right For You?

In this example it will take 30 months, which is two and a half years, to recoup the broker’s fee before you realize any savings from mortgage refinancing. Consider that it can take 30 years (or longer) to pay off the average fixed rate home loan and two years sounds like a mere drop in the bucket. If the amount of time it takes to recoup your expenses from refinancing with the lower payment amount is acceptable for you then mortgage refinancing is probably a good idea for your situation.

You can learn more about getting your next home with wholesale rates by checking out my free Underground Mortgage Refinancing Videos.


Here’s a quick sample video that exposes the reason all of your neighbors are paying too much for their home loans. Register today to get the full story.

Best Bank to Refinance Your Home

lose your shirt mortgage Best Bank to Refinance Your HomeWhich is the best bank to refinance your home mortgage loan? Are bank home loans a good deal or are they loaded with hidden markup and junk fees? Here are several tips to help you answer the question “which is the best bank to refinance without overpaying” for your next home loan.

Best Bank to Refinance or Not?

There’s a problem with choosing a bank for your next home loan that they don’’t want you to know about. You see, banks are exempt from the Real Estate Settlement Procedures Act, which requires brokers and lenders to disclose their profit margin and markup of your home loan. Thanks to this little-known loophole, even the best bank to refinance is only required to disclose their Annual Percentage Rate and provide you a Good Faith Estimate; both of which are marketing tools for the bank and little more than a work of fiction for you.

What you need to know is that your bank, even the so-called best bank to refinance, all markup mortgage rates to boost their profits at your expense. The profit your bank garners from overcharging you comes when your home loan is sold by your bank to investors on the secondary mortgage market. Home loans with higher than market mortgage rates bring the bank a premium profit known as Service Release Premium. All banks, even the best bank to refinance, practice overcharging their customers to boost profits.

Hidden Markup & Mortgage Junk Fees

This hidden markup from the bank coupled with the fact that even your best bank to refinance exploits the RESPA loophole to take advantage of their customers is the reason I never recommend refinancing your home loan with a bank. It is possible for you to refinance your home with a wholesale mortgage rate while avoiding this hidden markup, points, and junk fees. Wholesale mortgage rates save the average homeowner $1200 a year or more in lender finance charges alone and you don’t have to be a finance guru to get one.

While it’s true that most brokers will tell you that you can’t get wholesale interest rates, it is possible to find a broker willing to work for a flat loan origination fee. A reasonable fee for loan origination is one percent without taking a kickback from the mortgage lender for marking up your interest rate. All you just have to find the right kind of broker to arrange your next home loan. Many brokers take the same kickback for overcharging you; it just goes by a different name.

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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.

  • Free Underground Mortgage Videos

Here’s a sample to get you quickly on the path to mortgage bliss.