Mortgage Refinance Rates Without Overpaying Fees

AIf you’re considering mortgage refinancing there are a number of things you’ll need to know to avoid overpaying. The first thing you need to know is how 2011 changed the laws protecting homeowners from mortgage broker abuse and how to take advantage of these new laws. (Hint: They aren’t applied evenly to everyone.) According to the Secretary of Housing and Urban Development homeowners in the United States will lose sixteen billion dollars this year because they’re paying too much for their homes. Here are several of my best tips before you refi to help you get the lowest mortgage refinance rates without overpaying lender and broker fees.

Mortgage Refinance Rates – Brokers vs. Banks

You might be considering your bank’s mortgage refinance rates for your next home loan. While it’s true that banks are a convenient way to refinance your home, they’re exempt from the Real Estate Settlement Procedures Act, including the new rules that went into effect April of 2011.

These new rules prevent mortgage brokers from taking a double commission on your home loan. They can charge you an upfront mortgage origination fee or take a commission from the lender for marking up your interest rate, but not both. Because banks and broker banks fund their home loans with the bank’s money rather than funding with a wholesale lender they are exempt from laws that protect you from lender abuses.

Mortgage Yield Spread Premium in 2011

What you’ll need to know about your broker to get the best mortgage refinance rates is that wholesale lenders pay the person arranging your refinancing a fee known as Yield Spread Premium for locking and closing your home loan with higher than necessary mortgage refinance rates. Think of Yield Spread Premium as a kickback from the lender for overcharging you. Lenders pay Yield Spread Premium because they know home loans with higher than market interest rates bring them a premium profit when the loan is sold to investors on the secondary market.

Banks don’t play the same game as brokers and wholesale lenders. They do make the same profit when selling your home loan on the secondary market but they don’t have to pay anything for it. The result of your bank overcharging you is that you get stuck with a higher than necessary payment and the bank realizes a higher profit known as Service Release Premium on your home loan. The stink of it is thanks to that loophole in the Real Estate Settlement Procedures Act the bank isn’t required to disclose any of their profit margin or markup of your mortgage refinance rates.

The New Law Protects You if You Put it to Use

Most homeowners have never heard of Yield Spread Premium and do not understand how the unnecessary markup drives up their payments. If you want the lowest mortgage refinance rates for your next home loan you’ll need to find the right broker to arrange your home loan. It is possible to pay a flat fee of one percent for the mortgage origination fee and get wholesale mortgage refinance rates for your next home loan…you just have to find the right sort of broker for the job.

You can learn more about getting wholesale mortgage refinance rates for your next home loan while avoiding junk fees 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 finding the lowest mortgage refinance rates today.

Refinance Mortgage Rates – Banks vs Brokers

Are you looking for the best refinance mortgage rates for your next home loan but aren’t sure if going through a bank or a broker is the best option? Did you know that both banks and brokers profit from hidden markup of your mortgage rate, but only one is required to disclose the markup? Choosing the wrong person to arrange your home loan can be an expensive mistake you don’t want to be paying for the next 30 years. Here are several of my best tips before you refi to help you get the lowest refinance mortgage rates for your next home loan without paying junk fees.

Get the Lowest Refinance Mortgage Rates

Mortgage refinancing is a huge industry and practically everyone in the business is trying to make a buck at your expense. Banks and Brokers are no exception to this; in fact, according to the Secretary of Housing and Urban development the hidden markup I’m discussing here will be responsible for your friends and neighbors in the United States overpaying sixteen billion dollars this year alone.

What is this hidden markup that’s a part of even the best refinance mortgage rates? I am of course talking about Yield Spread Premium (YSP). Yield Spread Premium is actually a fee paid to the broker arranging your home loan for locking and closing with higher than necessary refinance mortgage rates. Think of YSP as an incentive, a kickback really, paid by your lender to the broker for overcharging you.

Brokers Do It, Banks Do It Too

Yield Spread Premium is an incentive for brokers to mark up your mortgage rates paid by the lender. YSP doesn’t apply to banks because they are the lender backing the loan. In the bank’s case the premium they make by giving you higher than market refinance mortgage rates is called Service Release Premium. The bank knows they make the majority of their profits by selling home loans to investors on the secondary market and home loans with higher than market rates bring them a premium profit. This profit realized by the bank from overcharging you is the Service Release Premium, which accomplishes the same thing as Yield Spread Premium…less cash in your pocket. The kicker is thanks to a loophole in the Real Estate Settlement Procedures Act your bank isn’t required to disclose any of this hidden markup of your interest rate.

How to Get Wholesale Refinance Mortgage Rates

The good news is that getting wholesale refinance mortgage rates is as simple as finding the right person to arrange your next home loan. It’s not as hard as you think; you don’t have to be a personal finance guru or have a cousin in the business to get wholesale mortgage rates. You simply have to find a mortgage broker willing to work for a flat origination fee of one percent without taking Yield Spread Premium on your home loan.

You can learn more about finding the right person to give you wholesale refinance mortgage rates without paying junk fees by checking out my free Underground Mortgage Refinancing Videos.

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

Here’s a quick sample today to get you started finding the right broker for the job.

Current Mortgage Interest Rate Without Hidden Markup

Are you searching for the lowest current mortgage interest rate for your next home loan? Are you worried that hidden markup and junk fees could result in overpaying thousands of dollars every year? Did you know that according to the Secretary of Housing and Urban Development your friends and neighbors are overpaying sixteen billion dollars this year alone? Here are several of my best tips to help you find the lowest current mortgage interest rate without throwing money way on your mortgage broker’s BS or lender junk fees.

Current Mortgage Interest Rate Online

Mortgage quotes are easy to find online; every Tom, Dick, & Harry with a mortgage website will give you a “free” quote without obligation. (Before you call me a hypocrite, yes it’s true…so will my site; however, the difference is that I’m going to show you how see through all the hidden markup and junk fees your neighbors fell for…)

What is this hidden markup I’m going on about? That’s the point isn’t it? …It’s hidden. If it wasn’t hidden your neighbors wouldn’t be throwing away an average of $1200 a year thanks to lender paid compensation known as Yield Spread Premium. What is Yield Spread Premium? Simply put, your mortgage lender pays any broker that locks and closes your home loan with a higher than necessary current mortgage interest rate a kickback known to the mortgage fat cats as Yield Spread Premium.

Why You Need to Avoid Mortgage Yield Spread Premium

Here’s an example to illustrate the problem with this hidden markup of your current mortgage interest rate. Suppose for example you’re refinancing your home and the broker quotes you a current mortgage interest rate of 6.75% on a $315,000 home loan. The broker charges you a mortgage origination fee of 1.5 percent for their work arranging your home loan and brags about the deal they’re getting you.

What the broker isn’t telling you is that you could have had that lender’s lowest current mortgage interest rate of 6.0%; however, this person marked it up to collect a commission from the lender of 3.0% of your home loan amount. This is paid in addition to the point and a half you’re already overpaying the broker for their origination fee.

What the big deal about an extra .75 percent when mortgage refinancing? Your monthly payment on a 30 year, fixed rate home loan at 6.5% will be $2,043 per month. If you had the current mortgage interest rate you deserve at 6.0% your payment will only be $1,888 per month! That’s a difference of $155 per month, a whopping $1,860 per year! Don’t fall for the same trap your neighbors did when mortgage refinancing.

It is possible to pay a flat origination fee of 1.0% of your loan amount and refinance with a wholesale mortgage rate keeping that $1,860 in your pocket for the things that really matter. You don’t have to have a mortgage broker cousin or be a personal finance guru to get a current mortgage interest rate that doesn’t include this hidden markup…you just need to know how to go about it.

You can learn more about mortgage refinancing with wholesale rates without paying junk fees 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 on the path to taking back $1,860 per year on your next home loan…mortgage broker be dammed!

Choosing The Best Refinance Companies When Mortgage Refinancing

Mortgage refinancing in today’s economy isn’t rocket science; however, it helps to have the right people in your corner to arrange your next home loan. Should you choose a big-named company like Amerisave when mortgage refinancing or is that small-time broker your safe bet for getting the best deal? Did you know that the according to the Secretary of Housing and Urban Development homeowners in the United States will overpay nearly sixteen billion dollars this year along because of hidden markup and junk fees? Here are several of my best tips for choosing the best refinance companies for your home loan while avoiding hidden markup and junk fees.

Mortgages for Dummies

You don’t have to be a personal finance guru to get the best deal when mortgage refinancing, you just have to find the right person to arrange your next home loan. How do you find the right person? Let me start by fist describing who the wrong person is for your next home loan.

Mortgage brokers get paid several different ways for arranging mortgage refinancing. Your broker can charge you a loan origination fee for arranging your new home loan or accept lender paid compensation. (Sometimes even both)

Wait a minute! Why would the lender pay for your mortgage broker’s work when arranging your mortgage refinancing? After all, if the broker’s fee isn’t coming out of your pocket isn’t that a win? Consider why the lender would pay this fee and you’ll quickly discover this lender paid mortgage refinancing compensation needs to be avoided at all costs…

Yield Spread Premium

Lenders reward brokers for locking and closing mortgage refinancing home loans with higher than necessary mortgage rates with a fee known as Yield Spread Premium. Simply put, for every .25% that your mortgage broker gets you to unknowingly agree to overpay the lenders pay them a kickback of 1.0% of your home loan amount. Lenders do this because home loans with higher than market interest rates bring them boocoo profits when the loans are sold to investors on the secondary market.

Do you think the broker is going to tell you that they’re marking up your mortgage rate? While it’s true that recent changes to the Real Estate Settlement Procedures Act require brokers to disclose Yield Spread Premium along with their origination fee; however, they all have clever ways of explaining it away for the uninitiated homeowner. I mean really, why should you worry about a fee that’s coming out of some else’s pocket?

Hidden Markup & Junk Fees, Oh My!

It’s true with anything that trusting the wrong person can lead to disaster. When it comes to your home loan how do you find someone or the best refinance companies that you can trust? Not all mortgage brokers are used car salesmen looking to make a buck at your expense; there are plenty of honest, hardworking brokers out there. In fact, one of them left me a comment today that I should be “expelled” from the country for publishing what I write here. (Everyone’s entitled to his or her own opinion…it is after all a free country…)

You Can Get Wholesale Mortgage Rates

I said earlier that you don’t have to be a financial guru to walk away with a home loan that’ll make your neighbors green with envy; you just have to find the right person to arrange your mortgage refinancing. How do you find the right person when mortgage refinancing? Many large companies like Amerisave Mortgage have high overhead and may not be able to negotiate the kind of deal that gets you wholesale mortgage rates. Look for local, self-employed brokers in your area (working from home is ideal) and tell this person that you understand how Yield Spread Premium works and will not accept mortgage refinancing that includes hidden markup or junk fees.

You can learn more about mortgage refinancing with wholesale interest rates without junk fees by checking out my Underground Mortgage Refinancing Videos.

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

Here’s a sample to get you started on the path to a wholesale interest rate for your next home loan.

Refi Rates Without Paying Junk Fees

How can you get the lowest possible refi rates without paying junk fees and hidden markup? Should you comparison shop good faith estimates into the wee hours of the morning or focus your energies elsewhere to avoid overpaying like many of your neighbors? Here are several of my best tips for getting the lowest refi rates and not overpay your broker or lender.

Home Refi Rates & Hidden Markup

Did you know that all of the good faith estimates you get from your bank or lender include hidden markup of one kind or another to boost profit for the person arranging your loan at your expense? It doesn’t matter if the person arranging your mortgage works for your bank, is a broker or is one of those giant web sites like Lending Tree, they all markup your best mortgage refi rates for fun and profit.

Many of your neighbors choose mortgage refi rates from their bank for convenience and because of effective marketing by the bank. The problem with bank originated mortgage loans is that banks simply do not offer wholesale refi rates to their customers. Your bank makes the majority of their profits by selling your home loan to investors on the secondary market. The bank knows that home loans with higher than necessary mortgage rates bring them a premium profit; also, because your bank is exempt from the Real Estate Settlement Procedures Act (RESPA) they are not required to disclose their profit on your home loan or how much they’ve marked up your home loan.

Beware Mortgage Broker Markup

Brokers aren’t much better than banks when it comes to marking up mortgage interest rates. The difference is that brokers are not exempt from RESPA laws and are required to disclose the fee they receive for marking up your home loan along with their origination fee. This fee the broker gets for marking up up your home loan is called Yield Spread Premium and once you know about it you can avoid paying for it. Simply put, mortgage refi rates that don’t include markup for Yield Spread Premium or need points paid at closing are wholesale, or par mortgage rates.

How to Get Wholesale Refi Rates

The good news since you’ve found my site is that you can get wholesale refi rates and save as much as $1200 or more each year that you’re paying on the home loan. You can get started finding wholesale mortgage rates for yourself by changing your mindset when shopping for a new home loan. Instead of comparison shopping mortgage refi rates trying to find the best deal focus your energy on finding the right person to arrange your next home loan. Start by telling potential brokers that you understand Yield Spread Premium and will not accept any home loan that include the markup. Offer to pay a flat origination fee of one percent, which is more than reasonable, and you’ll be well on your way to saving thousands of dollars on your next home loan.

You can learn more about getting wholesale mortgage refi rates for your next home loan while avoiding junk fees by checking out me free Underground Mortgage Refinancing Videos.

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

Heres a quick sample to get you started by exposing one of your lender’s dirty secrets that according to the Secretary of Housing and Urban Development will be responsible for fleecing American homeowners out of Sixteen Billion dollars this year alone.