Understand Your Mortgage Broker When Refinancing Your Home Mortgage Loan

Understand your mortgage broker and how they make their money and you can avoid overpaying thousands of dollars in unnecessary mortgage interest. Mortgage brokers routinely mark up the mortgage interest rates their customers qualified to receive a kickback from the lender they represent. Homeowners who learn to recognize this markup can avoid paying too much for their mortgage interest rate. Here are several tips to help you understand your mortgage broker when refinancing your mortgage loan.

Mortgage brokers are compensated for their work with the origination fees you pay when closing on a new mortgage. Reasonable origination fees for the work the broker does are 1-1.5 of your mortgage amount. The problem comes from the wholesale mortgage lenders incentive for overcharging you.

When your loan application is approved by the wholesale lender your mortgage broker represents, the application is approved at a specific interest rate. Your mortgage broker marks this interest rate up because the lender pays them a bonus for overcharging you. For every .25% you agree to pay over the interest rate you qualified, the broker receives an additional 1% of your loan amount. This markup of your mortgage rate by the broker is called Yield Spread Premium. If you agree to pay Yield Spread Premium you will overpay thousands of dollars every year for this mortgage interest.

How can you avoid paying Yield Spread Premium on your mortgage interest rate? Tell your mortgage broker you will not pay any retail markup of the mortgage rate. Ask to see the rate lock from the wholesale mortgage lender and compare the mortgage rate to the interest rate lock you receive from your mortgage broker. If the mortgage rates are different your broker is not being honest with you about your loan.

You can learn more about taking out a mortgage loan without overpaying by registering for a free six-part 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 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

Understand Your Mortgage Broker

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