Mortgage Refinancing: How to Negotiate With Your Loan Representative for the Best Terms and Rates
Your first priority when mortgage refinancing needs to be avoiding Yield Spread Premium. Your ability to avoid Yield Spread Premium will make or break the deal you get when mortgage refinancing. What is Yield Spread Premium? This is the markup your loan representative adds to your mortgage interest rate in order to receive a bonus from the wholesale lender.
Your mortgage company already receives the origination fee you pay for arranging your loan; however, for every .25% you agree to overpay on your mortgage rate, that company receives 1% of your loan amount as an incentive for overcharging you. That's right; your loan representative receives a bonus for overcharging you. How does negotiation help you avoid paying this markup? Tell your loan representative you will not pay any markup of your mortgage interest rate by their company. Tell that person you will pay a reasonable origination fee for their part mortgage refinancing.
A reasonable origination fee is no more than 1-1.5% of your loan amount. Next, tell your mortgage representative you will pay no more than $400 for the loan processing fee and any necessary closing costs. Check your good faith estimate for anything that resembles an application fee, lock fee, or courier fee. These are mortgage company junk fees you should tell your loan representative that you will not pay.
As you can see, mortgage "negotiation" is more like delivering your terms for mortgage refinancing. If the loan representative refuses to accept your terms, simply find another company that will. There are hundreds if not thousands of mortgage companies competing for your business, and that competition is fierce. State your terms, stand your ground, and you can avoid overpaying when mortgage refinancing.
You can learn more about your mortgage refinancing options, including expensive mistakes to avoid with a free, six part video tutorial.
Related Tags: mortgage refinancing, home mortgage refinance loan, mortgage rate, yield spread premium
To get your free mortgage guidebook 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
Mortgage Refinance Information Your Article Search Directory : Find in Articles
Recent articles in this category:
- Will The Mortgage Repayments Get Easier?
If you are one of the millions of people in the United Kingdom with a mortgage, you will know all to - Buy To Let Mortgages - Invest To Let
More and more people are jumping on the buy-to-let bandwagon. With experienced landlords adding to t - An Adaptable Mortgage
There's a lot of talk about re-mortgaging at present. If you're settled into your mortgage, you may - How Did This Happen?
Foreclosure is impacting around 2,700 of families a day throughout the US. Very few people choose - Foreclosure Procedure
Although timelines vary widely from state to state, there is a basic foreclosure procedure that you - Are You a First Time Home Buyer? Here's $7500......
Have you ever heard of the Housing and Recovery Act of 2008? Well today we are going to focus on - Mortgages - To Buy A Method To Bet
Buy-to-left often by private investors as interesting alternative way is seen to make their money gr - Commercial Hard Money Loans - Best Scenario
One of the best scenarios for commercial hard money loans is when the borrower has an opportunity - Utilising A Turn Mortgage In Your Earlier Years
A popular thing with Americans today is making a reverse mortgage. HUD made the first reverse mortga - Consider a Short Sale Before Foreclosure
Having one's home foreclosed is a serious event with long lasting effects on one's credit history
Most viewed articles in this category:
- Mortgage Refinancing - Rate Caps Protect You When Refinancing With an Adjustable Rate Mortgage
Adjustable Rate Mortgages can save you money when mortgage refinancing if you fully understand how t - 100% Mortgage Loans: What You Need to Know
Coming up with a 20% down payment can be a difficult task for many potential homebuyers. If you are - Home Equity Loan Pitfalls
The home equity loan came of age in 1996 when changes in the tax law eliminated deductions for the i - Mortgage Refinancing: How the Fannie Mae Weekly Yield can Help You Comparison Shop
Mortgage refinancing without knowing Fannie Mae's weekly yield is like buying a used car without kno - How to Pay Off Your Mortgage in 7 Years, Without Extra Payments
One of the most exciting new topics concerning wealth is “How to Pay Off Your Mortgage in - Mortgage Rate Comparison
Trying to get an "apples to apples" mortgage rate comparison can often be quite a hassle. Traditiona - Should I Pay Off My Mortgage Early?
Many people think that real estate debt is good debt. They think that their mortgage is their bigges - Mortgage Refinancing: Beware the Mortgage Vultures
If you are in the process of mortgage refinancing you need to be wary of overpaying for your loan. - Mortage Loans - How Much Does It Actually Cost In The End
Mortgage loans are the loans used to finance most people's first home. It is the big loan that ever - Where To Locate Home Improvement Loan Companies
Where to locate home improvement companies is a question that arises from many different people. Som
