Refinance Your Mortgage Without Paying Yield Spread Premium
The majority of mortgage companies and brokers work for a commission. If these people don't sell you a mortgage loan, they don't get paid. The problem with commission based sales is that unsuspecting consumers are frequently taken advantage of by sales representatives bent on bringing in six figure salaries. It is important to understand that mortgage loans are retail products just like automobiles; just like automobiles there is a wholesale market and retail market. In the mortgage business the retail market is where mortgage companies and brokers sell loans for wholesale lenders. The bad news is that these mortgage companies and brokers earn larger commissions when they place you with a higher cost mortgage. If you can learn to recognize this when shopping for a mortgage you can save yourself thousands of dollars in unnecessary mortgage interest and fees.
So what is Yield Spread Premium? When your mortgage refinancing application was approved you qualified for a specific interest rate. Your mortgage company or broker knows what you qualified for; however for every .25% you agree to pay above this rate they are rewarded with a bonus of 1% of your loan amount. You're already paying origination fees for their part in arranging your loan. Most homeowners pay in excess of 1.5% for origination fees; however, just like a car salesman, mortgage representatives are greedy and want to squeeze every penny they can out of your loan. How can you avoid paying Yield Spread Premium? You can learn this and other costly mistakes you need to avoid when refinancing your mortgage 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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