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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. Banks know that loans with above market interest rates bring them a premium profit at the homeowner’s expense. If you are in the process of refinancing your mortgage loan you might be considering a bank loan to get the job done. You can learn more about finding the best mortgage loan without overpaying by registering for a free mortgage guidebook. If you choose mortgage refinancing with your bank you are guaranteed to pay too much for that loan. Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. The first thing you need to know about banks and mortgage loans is that your bank is in the mortgage business to make money. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. The bank knows the wholesale mortgage rate you would have qualified for in a competitive market; however, banks build Service Release Premium into their rate sheets. Because your bank is exempt from the Real Estate Settlement Procedures Act they will never disclose or admit to this markup. 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 make the majority of their profits selling mortgage loans to investors on the secondary market; mortgages with above market interest rates give them a premium profit. It can either resell it at a higher price or rent it out. Here are several tips to help you avoid overpaying for your next mortgage. The bottom line is that your bank will not be less expensive than other options; your bank will always overcharge you for the mortgage loan. Here are several things to consider before refinancing your mortgage with a bank. Real estate agents and agencies also gain profits from buying and selling properties foreclosed by banks. This is the retail markup of your mortgage interest rate when you borrow from a wholesale lender. Because your bank is exempt from RESPA laws, the bank will never tell you how much your mortgage interest rate has been marked up. The only way to spot this markup that your bank includes in their rate sheets is to find out what the going wholesale mortgage rates are. The first thing you need to know about banks and mortgage loans is that your bank is in the mortgage business to make money. 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. 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. When RESPA was being the drafted the banking lobby campaigned feverishly to be excluded from any disclosure legislation. Because your bank is exempt from the Real Estate Settlement Procedures Act they will never disclose or admit to this markup. While it’s true refinancing your mortgage with a bank is convenient, banks have a dirty little secret when it comes to mortgage loans. Banks do this because they will receive an additional two points, or 2% of the loan balance, when the mortgage is sold on the secondary market. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. If you are in the process of refinancing your home mortgage and are considering your bank, there are several things you need to know before making an expensive mistake. Here are tips to help you avoid paying too much when refinancing your mortgage loan. Aside from the fact that Banks don’t have to play by the rules your bank has a dirty little mortgage secret. Banks are exempt from the disclosure rules required of other mortgage lenders.
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