Once you’ve decided to refinance your mortgage, how should you go about it? The costs for taking out a new mortgage vary widely and if you’re not careful it’s very easy to pay too much. Here are several tips to help save you money when refinancing your mortgage loan.
People are often full of advice when it comes to refinancing your mortgage. Shop till you drop they tell you, compare loan offers and find the one with the lowest interest rate. While this is good advice, unless you know how to avoid retail markup of your mortgage interest rate you will not get the lowest mortgage rate.
What is retail markup? The technical term is “Yield Spread Premium” and is simply the markup of your mortgage interest rate by the loan originator to boost their commission. It doesn’t matter who the loan originator is, be it a mortgage broker, Internet lender, or mom and pop mortgage company, they all markup mortgage interest rates. They do this because the wholesale lender they represent pays them a bonus of one percent of your loan amount for each quarter point you agree to overpay.
Mortgage companies and brokers are not exempt from disclosing their markup; however, it is frequently buried in your Good Faith Estimate and HUD statement. How can you avoid paying Yield Spread Premium? Tell your mortgage representative that you understand Yield Spread Premium and will not tolerate it with your loan. Ask to see the rate sheet from the wholesale lender that approved your loan and compare it to your rate lock. You can learn more about refinancing your mortgage while avoiding unnecessary markup with a free mortgage tutorial.
To get your FREE six-part Mortgage Refinancing Tutorial, visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. To get your hands on this free video tutorial: "Mortgage Refinancing - What You Need to Know," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com.
Claim your free mortgage refinancing tutorial today at: http://www.refiadvisor.com
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