Refinance My Mortgage Without Overpaying

Are you searching for the best refinance companies for your next home loan and want to avoid overpaying? Should you pay that mortgage origination fee or get one of those no fee home loans in exchange for a higher interest rate? Did you know that 95% of your neighbors are currently overpaying for their home loans because of hidden markup and junk fees? Here are several of my best mortgage refinancing tips to help you get the best deal on your next home loan without paying junk fees or unnecessary hidden markup.

Refinance With Wholesale Mortgage Rates

Most brokers will tell you that you simply can’t get wholesale mortgage rates. They do this in the hope of protecting the hidden commission paid by lenders known as Yield Spread Premium. Don’t worry if you’re not familiar with Yield Spread Premium; most of your neighbors haven’t heard of it either. Simply put, Yield Spread Premium is a commission paid to any broker that locks and closes your mortgage refinancing with a higher than necessary interest rate. This is paid in addition to any mortgage origination fee you’re already paying this person for arranging your home loan.

Should you worry about an origination charge paid by the lender? I mean, if the money isn’t coming out of your pocket why should you care? What should concern you is not the fact that this fee is being paid by your lender but why they’re paying it. Here’s an example to illustrate what hidden markup for lender paid mortgage broker compensation does to your monthly payments. Don’t worry if you’re already in the process of closing on a new home loan but aren’t sure if it includes mortgage yield spread; however, you should familiarize yourself with the 3 day rescission period.

Yield Spread Premium in Action

Did you know that for every .25 percent that your mortgage broker marks up your interest rate the lender pays them a commission of on percent of your home loan amount? Lenders do this because they know home loans with higher than market interest rates bring them a premium profit when sold to investors on the secondary market. What does this hidden markup mean for your bottom line? Here’s an example to illustrate why you should avoid paying for Yield Spread Premium when mortgage refinancing at all cost.

Suppose for example you’re refinancing your home for $350,000. The broker quotes you a mortgage rate of 6.75% and charges you an origination fee of 1.5%. The first thing you should know is never pay more than one percent of your loan amount for loan origination. Secondly, what your broker isn’t telling you about your interest rate is that the lender actually approved you for a 6.0% mortgage rate but they’ve marked it up to collect a kickback of 3.0% from your lender? That’s lender paid mortgage broker compensation in the amount of $10,500 in addition to the loan origination fee of $5,250 you’re already overpaying the broker for a few hours work…ridiculous huh?

What does this hidden markup do to your monthly payments? At 6.75% your payment on a 30 year fixed rate home loan will be $2,270 per month. If you had the mortgage rate you deserve at 6.0% your payment would only be $2,098 per month. That’s a difference of $172 per month, a whopping $2,064 per year you’re throwing away because you trusted the wrong person to arrange your mortgage refinancing.

You can learn more about avoiding this unnecessary markup of your interest rate and other junk fees by checking out my free Underground Mortgage Refinancing Videos.

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Here’s a quick sample to get you started by exposing more truth about Yield Spread Premium and your next home loan…

Mortgage Refi Advice Saves Thousands

How would you like to slash $1200 a year from your home loan payments on your next mortgage refi? What if a little known mortgage refi strategy could keep $100 or more in your pocket every month? Here are several of my best mortgage refi tips to help you avoid unnecessary markup and junk fees on your next home loan.

Wholesale Mortgage Refi Secret

Most brokers will tell you that you can’t get wholesale mortgage rates because they’re protecting a hidden commission they pocket for marking up your interest rate. Truth be told, you can get a wholesale interest rate once you find the right person to arrange your home loan. What are wholesale mortgage rates? Simply put, wholesale interest rates do not include markup intended to create a commission for the person arranging your home loan and you won’t be required to pay discount points just to qualify.

What about this hidden markup of your home loan interest rate? Your broker knows the interest rate your lender approved you for; however, for every quarter point they mark up this mortgage refi interest rate the lender kicks them back one percent of your home loan amount. This kickback is a cash commission known as Yield Spread Premium or overage and is basically an incentive for your broker to overcharge you.

Overage & Your Home Loan Payments

What does mortgage refi overage do to your home loan payments? Here’s an example to illustrate why you need to avoid this unnecessary markup on your next home loan. Suppose your mortgage refi is for $275,000 and the broker quotes you an interest rate of 5.75%, charging you an origination fee of 1.5%. In this case the origination fee alone will cost you $4,125 at closing, but what about your payments? In this case your monthly payment on a thirty-year, fixed-rate home loan would be $1,605. Not bad you say…that’s less than I’m paying now.

The problem with this mortgage refi is what the broker isn’t telling you. Aside from overcharging the origination fee, (a reasonable amount to pay the broker is 1%) what the broker isn’t telling you is that you actually qualified for a 5% interest rate and they’ve marked it up for Yield Spread Premium or overage from the lender. In this example the broker pockets $8,250 from the lender for overcharging you on top of the $4,125 you’re already overpaying for loan origination. What about your home loan payments? If you had the home loan you deserve at 5% your monthly payment would only be $1,476. That’s a difference of $1,548 of your cash lost down the drain every year because the wrong broker took advantage of you.

Avoid Hidden Markup & Save

You don’t have to fall for the same pitfalls your neighbors did on your mortgage refi. It is possible to refinance with a wholesale rate, pay the broker a flat one percent for loan origination while avoiding junk fees…you just have to find the right person to arrange your next mortgage refi. This isn’t as hard as you think…you don’t have to be a personal finance guru or have a cousin in the business.

You can learn more about getting a wholesale interest rate on your next mortgage refi by checking out my free Underground Mortgage Videos.

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

Here’s a quick sample to get you started with more about avoiding that sneaky mortgage refi overage that drives up your payments unnecessarily…

Comerica Bank Review

comerica Comerica Bank ReviewAre you considering refinancing your home with Comerica Bank and want an objective review prior to signing on the dotted line? Banks can be a fast and convenient way of refinancing your home loan; however, there are several things you need to know about Comerica Bank and banks in general before refinancing your mortgage loan. Here is my Comerica Bank Review to help you make an informed decision before refinancing your home mortgage loan.

Comerica Bank Mortgage

Comerica Bank is a part of Comerica Inc, NYSE: CMA and has their corporate headquarters in Dallas Texas. Comerica Bank offers a variety of banking products including personal checking and savings accounts, business accounts, investments, debit cards for Social Security recipients, and mortgage loans. I was able to locate a handful of contact phone numbers as well as a number of customer complaints.

Comerica Bank Contact Information

Comerica Bank’s website is located at http://www.comerica.com. The bank is a publicly traded company overseen by a board of directors. Their corporate address is: Comerica Bank Tower, 1717 Main Street Dallas, TX 75201. According to the website Comerica Bank is a financial services company focusing on the three segments of business banking, consumer banking, and investments.

Comerica Bank Contact Numbers:
(214) 630-3030
(800) 266-3742 Eastern Time Zone
(800) 292-1300
(800) 925-2160 Central Time Zone
(800) 569-1400
(800) 522-2265 Mount/Pacific Time Zone
(800) 572-6620 Lost/Stolen Cards

Comerica Bank Complaints

Searching Google or “Comerica Bank Complaints” reveals 15,900 results as of the time of this writing, significantly less than Bank of America. Does this mean you should refinance your home loan with Comerica Bank? You should know there are several compelling reasons to avoid any bank when refinancing your home loan which I’ll get to shortly. The Better Business Bureau assigned Comerica Bank a rating of A+. The BBB ranks businesses by a rating that ranges from F- to A+. During the last 36 months of the BBB reporting period there were 11 complaints filed against Comerica Bank, again significantly lower than Bank of America.

Should You Get a Mortgage Loan from Comerica Bank?

The problem with mortgage loans from Comerica Bank is same problem with taking out a home loan from any bank. This problem comes from the fact that Comerica Bank is exempt from the Real Estate Settlement Procedures Act (RESPA) and is not required to disclose their profit margin on your loan. Banks incorporate Service Release Premium into their rate sheets and because of the RESPA loophole are not required to disclose how much higher their bank rates are compared to wholesale mortgage rates. You would think banks would want to be competitive with the rest of the mortgage industry; however, banks rely on the fact that most homeowners just don’t know better and happily overcharge their customers. Because the bank is exempt from this key disclosure legislation known as RESPA the only way you’ll see their markup is to compare Comerica Bank’s mortgage rates to those offered by wholesale lenders before making a decision.

Bankers will tell you that you can’t get wholesale mortgage rates for your home loan and that this isn’t a valid comparison; however, getting wholesale rates isn’t difficult for the average homeowner if you find the right person to arrange your next mortgage loan. It is possible to refinance your home with a wholesale mortgage rate paying a flat origination fee of one percent without paying any bank junk fees.

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

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Best Refinance Mortgage Rate

If you’re considering refinancing your home mortgage you’re probably searching the internet for the best refinance mortgage rate. What is the best mortgage rate? Is it the lowest one you can find with the least amount of fees? How do you compare mortgage offers to determine which one is better? Most homeowners think they know how to shop for a mortgage; however, most of these homeowners overpay hundreds of dollars every month because they shop the wrong way. Here is my no holds barred, take no prisoners guide to getting the best refinance mortgage rate without paying too much.

How to Get the Best Refinance Mortgage Rate

Remember that old Meineke commercial from the 80s? “I’m not going to pay a lot for this muffler!” That’s the attitude you need to adopt when shopping for a mortgage; however, you still need to know how mortgage loans are sold. That’s right…mortgage loans are sold. Just like paying retail for kitchen appliances creates a profit for someone, paying retail for a mortgage loan is putting your money in someone else’s pocket. It’s a fairly simple concept to wrap your head around…the less you pay for your next home loan, the better off you’ll be financially.

Wholesale Mortgage Loans

Everyone’s familiar with buying wholesale. Whatever you’re looking for from plasma televisions to spark plugs are cheaper if you can buy wholesale. The same is true of mortgage loans…get a wholesale mortgage rate and you’re cutting out the middleman’s commission, saving as much as several hundred dollars per month. What is a wholesale mortgage rate? Wholesale mortgage rates are called Par Mortgage Rates in the business. Par mortgage rates don’t cost anything to get, meaning you don’t have to pay points upfront to qualify, and they do not create an unnecessary commission for the person arranging your home loan. That’s what the loan origination fee is for…many mortgage brokers double dip their commissions at your expense. They’ll charge you a loan origination fee for arranging your home loan and then take a commission from the lender for marking up your mortgage rate…often without explaining what they’ve done. It is this unnecessary markup of your interest rate that you need to avoid if you want the best refinance mortgage rate.

Yield Spread Premium

How does this mortgage broker scam work? Here’s a simple example to illustrate how sleazy mortgage brokers can be. Suppose for instance you’re refinancing your home loan for $315,000. Your mortgage broker quotes you an interest rate of 6.5 percent and charges you a loan origination fee of 1.5 percent. On a 30 year, fixed rate mortgage of $315,000 at 6.5 percent your mortgage payment will be $1,990. What your sleazeball mortgage broker isn’t telling you actually qualified for a 6 percent rate but they marked it up to get a two point commission from the lender for overcharging you. If you had the mortgage rate you deserve at 6 percent your mortgage payment would be only $1,880 per month! That’s $1,320 you’re losing every year because the scumbag broker took advantage of you. Am I being too hard on mortgage brokers? Not at all…sure there are honest, hardworking mortgage brokers out there that actually help their customers; however, it’s better to error on the side of caution when dealing with a mortgage broker so you don’t end up with some bloodsucking jerk whose business model is ripping off their customers with Yield Spread Premium.

Yield Spread Premium is a commission created for the mortgage broker when they lock and close your mortgage loan with a higher than necessary mortgage rate.

The good news is that you can avoid this unnecessary markup of your mortgage rate when refinancing your home loan. Start by telling potential mortgage brokers that you understand how Yield Spread Premium works and that you will not accept any mortgage loan that includes the markup. Finding the right mortgage broker can difficult; chances are large brokerage firms are not going to be willing to negotiate the kind of deal you’re looking for to get the best refinance mortgage rate. Self employed mortgage brokers are typically willing to negotiate and are usually the honest, hard working professional you would expect your mortgage broker to be.

You can learn more about getting a wholesale mortgage for the best refinance mortgage rate possible while avoiding unnecessary fees by checking out my free Underground Mortgage Videos.

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