Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. The problem with bank rate sheets is that they already include Service Release Premium and the bank is under no legal obligation to admit it. The markup from 6.0% - 6.5% is Service Release Premium.
The problem with taking out a mortgage from your Bank is that they are not required to disclose any of this markup due to loopholes in the Real Estate Settlement Procedures Act. Here are several tips to help you avoid overpaying for your next mortgage. Everyone else in the marketplace (mortgage companies & brokers) is a retail vendor that sells mortgage products for wholesale lenders.
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. Banks inflate their mortgage rates with Service Release Premium to boost their profits at your expense. In addition to having fewer choices, your bank is much less likely to negotiate over interest rates and fees.
If you are considering mortgage refinancing with your bank there are several things you need to know to avoid making an expensive mistake. 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. 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. It will be assigned a value and will be listed in a publicly-available foreclosures list.
If you are considering mortgage refinancing with your bank, you should read the following discussion first. When the mortgage rate is marked up by a bank the markup is called Service Release Premium. If you are considering mortgage refinancing with your bank, you should read the following discussion first.
The problem with bank rate sheets is that they already include Service Release Premium and the bank is under no legal obligation to admit it. Banks exploit the loopholes in RESPA to make their loans seem more affordable with the fees and closing costs; however, they hit you with undisclosed SRP markup on your interest rate. Banks make the majority of their profits from mortgage lending by selling their loans on the secondary mortgage market. Fannie Mae publishes the weekly yield on their website with their press releases.
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. Real estate agents and agencies also gain profits from buying and selling properties foreclosed by banks.
You can compare your bank’s inflated mortgage interest to the weekly yield on Fannie Mae’s website to get an idea of the markup. The mortgage you take out from the bank is funded entirely by the bank and pooled together with their other loans. You can learn more about your mortgage refinancing options, including costly pitfalls to avoid by registering for a free mortgage DVD.