Mortgage Refinancing With a Broker: Costly Mistakes to Avoid When Refinancing With a Mortgage Broker

By Louie Latour
If you are considering mortgage refinancing with a mortgage broker, there are a number of things you need to know before signing an agreement. Mortgage brokers can be an excellent resource for finding competitive mortgage refinancing offers; however, you need to be careful to avoid overpaying for the mortgage broker's services. Here are several tips to help you avoid costly mortgage refinancing mistakes when working with a mortgage broker.

Mortgage Refinancing: What Are Mortgage Brokers?

Mortgage brokers are a third party retail outlet for securing mortgage refinancing loans. When mortgage refinancing it is important to understand the how the retail mortgage market works. With the exception of banks and broker-banks (which you should avoid altogether) the retail mortgage market is made up of mortgage companies, online web portals, and mortgage brokers. These retail outlets all work basically the same; mortgage brokers sell mortgages for wholesale mortgage lenders for a commission.

Mortgage Refinancing: How Do Mortgage Brokers Operate?

When you apply for a mortgage loan from a mortgage broker the wholesale lender qualifies you for a certain interest rate and provides the mortgage broker with a written guarantee of that interest rate. The mortgage broker will turn around and reissue the mortgage refinancing interest rate guarantee in their company's name. Do you think the guarantee you receive is the same as the one that came from the wholesale lender? If you said "No!" give yourself a gold star. Mortgage brokers always mark up the interest rate the wholesale lender qualified you for. The wholesale mortgage refinancing lender may have qualified you for a 6.0% loan; however, the mortgage broker marked it up to 6.75% on your interest rate guarantee.

Mortgage Refinancing: What is Mortgage Broker Yield Spread Premium?

The markup your mortgage broker slips into your interest rate when mortgage refinancing is called Yield Spread Premium. Mortgage brokers are compensated with the origination points or fees you pay for mortgage refinancing. Yield Spread Premium is the icing on the cake for many retail mortgage outlets like mortgage brokers. By overcharging you for the interest rate, the mortgage broker receives an additional point for each .25% they mark up on the loan as a bonus from the wholesale lender. In the case above where the wholesale lender qualified you for a 6% loan and your mortgage broker marked up the interest rate to 6.75%, that broker will receive three additional points as a bonus for ripping you off.

Suppose your mortgage refinancing loan was for $200,000, the mortgage broker would receive a $6,000 bonus for overcharging you. The overwhelming majority of homeowners never know they've been ripped off in this manner by the mortgage broker. How can you avoid paying this mortgage broker markup when mortgage refinancing? Homeowners that learn to recognize Yield Spread Premium can avoid paying the markup. To learn how you can avoid paying mortgage broker markup when refinancing your mortgage, register for a free mortgage refinancing guidebook.

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 Broker - 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

Mortgage Refinance Information

Article Source: [http://EzineArticles.com

Mortgage Refinance Information: Three Tips to Find the Best Mortgage Loan Regardless of Credit

By Louie Latour
Mortgage Refinance Information is fast and easy to find online. Using the Internet you can quickly find mortgage refinance information from a dozens of online lenders. Comparing mortgage refinance information from these lenders will help you find the best mortgage for your financial situation; here are three tips to help you quickly find mortgage refinance information and the best home loan for your financial situation.

I. Shop from a Variety of Brokers and Lenders

When you compare loan offers while collecting mortgage refinance information, you can use the internet to quickly screen mortgage offers. The main advantage of using the Internet is that you can quickly screen mortgage refinance information without having the lender run your credit. You will need to provide general information about your income and the state of your credit; however, you can complete all of your online shopping without providing your Social Security Number.

II. Avoid Exaggerating Your Income and Credit

When comparison shopping mortgage refinance information, the lenders and brokers will ask you for general information regarding your income, assets, and credit. You should avoid the temptation to exaggerate any of this information. While you are not providing your Social Security number when shopping for mortgage refinance information, the lender or broker will run your credit before approving your loan. If the lender finds discrepancies when they run your credit score, you could lose the interest rate you were hoping to receive or have your application denied. You will find the process of refinancing your mortgage go much smoother if you provide accurate information in a timely manner when comparing mortgage refinance information online.

III. Make Sure You Deal with Reputable Sources of Mortgage Refinance Information

When comparing mortgage refinance information online, make sure the websites you work with are reputable. Does the mortgage refinance information provided seem professional? Does the website list full contact information and use Secure Socket Layer connections for encrypting mortgage refinance information? Never provide sensitive personal information without insuring the website you are dealing with is a reputable source of mortgage refinance information.

You can find more sources for mortgage refinance information, including common mistakes to avoid by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid common 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 guidebook today at: http://www.refiadvisor.com

Mortgage Refinance Information

Article Source: [http://EzineArticles.com/?Mortgage-Refinance-Information:-Three-Tips-to-Find-the-Best-Mortgage-Loan-Regardless-of-Credit&id=344885] Mortgage Refinance Information: Three Tips to Find the Best Mortgage Loan Regardless of Credit