You have good credit and meet every requirement to qualify for a 6.00% interest rate on the wholesale market. 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. While banks are a convenient way of getting a new mortgage and are much less likely to try and use high pressured sales tactics on you, you are limited to the Bank only mortgage products. Banks do the same thing to make money selling the loans on the secondary market.
When RESPA was being the drafted the banking lobby campaigned feverishly to be excluded from any disclosure legislation. Banks fall into a special category of mortgage lenders and routinely charge Service Release Premium (SRP) for their loans. Aside from the fact that Banks don’t have to play by the rules your bank has a dirty little mortgage secret.
These rate sheets have Service Release Premium already built in; however, you can get an idea of what the going wholesale rate is by checking the weekly yield on Fannie Mae’s website. If you’re considering refinancing your mortgage with a bank, you need to read this article. You can learn more about refinancing your mortgage without overpaying by registering for a free mortgage tutorial.
The Real Estate Settlement Procedures Act or RESPA for short protects homeowners from predatory lending practices by requiring mortgage lenders to disclose their fees and broker markup of your mortgage interest rate. If it wins, it will have total ownership of the property and may do anything with it. Because your Bank is exempt from the Real Estate Settlement Procedures Act that requires mortgage lenders to disclose this markup, the only ones that know how much they are overcharging you is the Bank.
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. • Limited Number of Loan Products to Choose From • No Room for Negotiation on Your Interest Rate • Interest Rates Are Always Higher • Banks Are Not Willing to Negotiate Lender Fees and Closing Costs • Banks are Exempt from Disclosure Rules Provided by the RESPA Act. Because your Bank is exempt from the Real Estate Settlement Procedures Act that requires mortgage lenders to disclose this markup, the only ones that know how much they are overcharging you is the Bank. Bank mortgage loans are often called “correspondent loans” because after the banker completes your mortgage that bank will immediately turn around and sell it on the secondary market.
There many people, some are housewives and once-a-week agents who have earned a lot from making the buying and selling of foreclosed properties a hobby. Your Bank may seem like a convenient way of refinancing your mortgage loan; however, Banks have secret when it comes to disclosing information about their fees and markup. Your bank doesn’t do this collecting the interest from payment you send in every month; banks make the majority of their profits selling loans on the secondary market.
What makes a profitable investment on the secondary mortgage market? The answer: high interest mortgage debt. It can either resell it at a higher price or rent it out. You can learn more about refinancing your mortgage while avoiding costly mistakes with a free mortgage tutorial.
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