Comparison Shopping For The Perfect Mortgage When Refinancing
By Louie Latour
People will often tell you the secret to finding the perfect mortgage is to comparison shop until you drop. While comparison shopping is important when mortgage refinancing, most homeowners simply end up with the best of the worst mortgage offers available. Here are several tips to help you negotiate when comparison shopping and close with the best possible mortgage rate.
What most homeowners don t realize about the mortgage quotes they receive is that they are all retail mortgage rates. The mortgage broker or company providing the quote includes their markup of that interest rate and does not tell you the wholesale interest rate that you qualify. The reason they mark up your interest rate is that the lender pays them a bonus for overcharging you.
That s right, for every .25 percent you agree to overpay, your loan originator is paid a bonus of one percent of your mortgage amount. This bonus is in addition to the origination fees you are probably already overpaying for their services. If you accept a retail interest rate when refinancing you are effectively paying double, often triple for your new mortgage loan. This is why negotiation is critical when comparison shopping you have to tell loan representatives that you understand retail markup, also called Yield Spread Premium, and will not tolerate it with your new mortgage.
When asking for mortgage quotes you should always try and collect your quotes on the same day. Tell the representative that you will pay a reasonable fee for the origination and all necessary closings costs however, you will not accept a mortgage that includes Yield Spread Premium. Whenever possible try and deal with the owner of the Mortgage Company or brokerage when negotiating for a mortgage.
You can learn more about negotiating for the perfect mortgage with a free mortgage refinancing video tutorial.
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 Refinance - What You Need to Know,” 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: Mortgage Refinancing - How to Comparison Shop Using the Good Faith Estimate
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