California Mortgage Refinance - Finding a New Loan Without Overpaying
Many homeowners elect to refinance their California mortgage loans with their banks due to their convenience; however, before you do this it is important to explore your options and qualify for the lowest mortgage rate. Avoiding the hidden markup of Yield Spread Premium will allow you to qualify for the lowest mortgage interest rate based on your credit and qualifying ratios.
What is this Yield Spread Premium? If you've never heard of Yield Spread Premium before, it is simply the retail markup of your mortgage interest rate to boost your loan originator's commission. The wholesale lender that approved your California mortgage qualified you for a specific interest rate; however, your mortgage company marks this rate up because the lender pays them a bonus for overcharging you. For every quarter percent you overpay, the mortgage company receives a commission of one percent of you loan amount.
You might ask, shouldn't I just refinance with my bank since they don't use wholesale mortgage lenders? Banks are just as guilty of inflating their mortgage rates for different reasons. Banks sell their mortgage loans to investors on the secondary market. The higher your mortgage rate, the more money your Bank makes from the sale. When a Bank marks up your mortgage interest rate to make a profit from the sale it is called Service Release Premium.
How can you avoid paying this unnecessary markup of your California mortgage rate? Simply learn how to recognize the markup and you can negotiate with lenders not to pay it. You can learn more about refinancing your California mortgage without overpaying with a free mortgage tutorial.
Related Tags: refi home loan, home mortgage refinance loan, california mortgage refinancing
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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