Mortgage Refinancing Without Overpaying

If youre considering refinancing your home mortgage there are steps you can take to avoid overpaying for the new loan. Many homeowners dont realize that their interest rate has been marked up to give the loan originator a bonus and according to the Secretary of Housing and Urban Development, this markup will cost homeowners in the United States nearly sixteen billion dollars this year alone. Here are several tips to help you avoid the unnecessary markup of your mortgage interest rate.

The first step you should take when mortgage refinancing is to avoid your bank completely. Banks are not required by law to disclose their markup of your interest rate. Banks routinely charge their borrowers Service Release Premium to boost their profits when your loan is sold on the secondary market. Bank interest rates are typically .5 to .75% higher than market mortgage rates. The banking lobby has spent millions of dollars to be excluded from the disclosure laws in the United States; dont expect this to change anytime soon.

Mortgage brokers on the other hand are just as greedy as banks so the interest rates you find when comparison shopping are just as inflated as bank rates. The question becomes: How can you refinance your mortgage without paying unnecessary markup? This markup is called Yield Spread Premium and is the difference between the interest rate the wholesale lender approves you and the rate your mortgage broker quotes you.

The biggest problem with refinancing your mortgage with a broker is that brokers are paid by commission; the more you pay, the better your brokers commission. The good news is that you can circumvent the brokers commission and avoid paying Yield Spread Premium when refinancing your mortgage. Homeowners who learn to recognize this unnecessary markup of their mortgage interest rate can negotiate to avoid paying it. You can learn more about refinancing your mortgage without paying too much by registering for a free mortgage toolkit.

To get your FREE Mortgage Refinancing Video Toolkit, 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 "Mortgage Refinancing Toolkit," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com.

Get your free mortgage refinancing tutorial today at: http://www.refiadvisor.com

Mortgage Refinancing Closing Costs

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