Mortgage Refinancing: How the Fannie Mae Weekly Yield can Help You Comparison Shop
Fannie Mae and Freddie Mac are quasi-government, for profit organizations that regulate mortgage lending in the United States. Before shopping for a mortgage loan it is important to check wholesale mortgage interest rates to get a benchmark of what you can expect to pay. The interest rate you qualify for depends on your credit; if you have excellent credit there is no reason your interest rate cannot be very close to those posted on Fannie Mae's website. If you have poor credit it is much more difficult to tell if the mortgage rate being quoted to you is fair.
How can you check Fannie Mae's Weekly Yield?
Fannie Mae posts the weekly yield in a news release on their website. Point your web browser to fanniemae.com/newsreleases and look for the most recent posting titled "Fannie Mae Weekly Yield." Keep in mind that the mortgage rates you find here are one week old; however, this data is still useful when determining if the mortgage rate quoted by your loan representative is in line with prevailing mortgage interest rates.
Most of the time your loan representative's quote will be higher than Fannie Mae's Weekly Yield because mortgage companies and brokers mark up your mortgage rate to boost their profits. Tell your loan representative that you've been watching the Fannie Mae Weekly Yield and ask for an explanation as to why your mortgage rate is higher. Remember, shopping for a mortgage is just like buying a used car. If you know the Blue Book value of the car you have leverage when negotiating with the car dealership.
When negotiating with your loan representative it is important to tell that person that you will not pay any markup of your mortgage interest rate by their company. Tell your loan representative that you will pay reasonable origination fees for your loan (no more than 1.5% for a home you will occupy) and a reasonable loan processing fee (no more than $400), but will not pay any markup of your mortgage interest rate. This markup is called Yield Spread Premium and if you unknowingly agree to pay it you will pay thousands of dollars in unnecessary mortgage interest.
You can learn more about your mortgage refinancing options, including costly mistakes to avoid with a free, six-part mortgage refinancing 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
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