Mortgage Refinancing - Will You Pay Too Much for Too Little?
By Louie Latour
Did you know that nearly everyone in the United States pays twice what he or she thinks they are paying for their mortgage loan? If you think the origination fees are costing you $2,500, it’s really costing you $5,000 and probably even more! The real kicker is that you don’t even know this is happening! Here are several tips to help you avoid paying too much for too little when mortgage refinancing.
Mortgage companies take advantage of homeowners in a variety of different ways; after overcharging you for lender fees and closing costs you’ll overpay every single month with a higher mortgage rate. If you knew that you will be paying an additional $10,000 to $30,000 in finance charges to your lender, would you agree to that higher interest rate? Not likely, you would never agree to fork over an additional $30,000 of your own money.
Once you learn how mortgage companies do this, you can avoid overpaying when mortgage refinancing. The way mortgage companies overcharge you is called “Yield Spread Premium.” This is a fancy term for the retail markup of your mortgage interest rate by the Mortgage Company or broker. Mortgage companies do this because of an incentive from wholesale lenders for overcharging you. For every quarter point you agree to overpay beyond the mortgage rate you qualified for, the wholesale lender pays your Mortgage Company or broker one point, (1% of your loan amount) as a bonus.
How can you avoid overpaying for your next mortgage loan? You can learn strategies to avoid paying Yield Spread Premium on your mortgage rate, and other costly homeowner mistakes by registering for a free mortgage refinancing tutorial.
To get your FREE six-part Mortgage Refinancing Video Tutorial, visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of “Mortgage Refinancing - What You Need to Know,” which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.
Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com
Article Source: http://EzineArticles.com/?expert=Louie_Latour
Technorati Tags: mortgage refinancing, mortgage interest rate, mortgage companies, mortgage rate, mortgage loan, mortgage company, predatory lenders, retail markup, wholesale lenders, yield spread, wholesale lender, lender fees, origination fees, video tutorial, fancy term, once you learn
