If you are considering refinancing your home loan in Maryland, Yield Spread Premium could cost you thousands of dollars. What is Yield Spread Premium? It is simply the markup of your interest rate for your loan representative’s commission. If you haven’t learned how to recognize this markup you’re paying thousands of dollars for your mortgage unnecessarily. Here are several tips to help you avoid paying too much when refinancing your Maryland mortgage.
How does this markup of your mortgage rate work? The wholesale lender that approved your new mortgage qualified you for a specific mortgage rate and provided this rate to your loan representative. Your mortgage representative marks up your interest rate because the wholesale lender pays them a bonus of one percent of your loan amount for every quarter percent you agree to overpay.
Mortgage companies and brokers are required to disclose this markup; however, they have clever ways of disguising it on your good faith estimate and HUD statement. Unless you know what to look for you’ll probably never spot the Yield Spread Premium with your Maryland mortgage loan. The good news is that homeowners who learn to recognize this unnecessary markup can negotiate to avoid paying it when refinancing.
How can you avoid Yield Spread Premium when refinancing your Maryland mortgage loan? Start by telling your loan representatives that you understand how Yield Spread Premium works and will not tolerate it with your new loan. Tell them that you will pay a reasonable loan origination fee (not more than one percent) and all necessary third party settlement charges. You can learn more about refinancing your Maryland mortgage while avoiding costly mistakes with a free mortgage 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
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