Bank Refinance - Car Refinance - Home Loan Refinance 354

If you’re considering refinancing your mortgage with a bank, you need to read this article. Banks inflate their mortgage rates with Service Release Premium to boost their profits at your expense. If you are not familiar with RESPA, it is the Real Estate Settlement Procedures Act that protects borrowers in the United Sates by setting guidelines for disclosure. Because your bank is exempt from RESPA laws, the bank will never tell you how much your mortgage interest rate has been marked up. Banks are different from traditional mortgage originators because they close on loans in their own name. The markup from 6.0% - 6.5% is Service Release Premium. Your loan representative will show you the bank’s rate sheets and swear the interest rate isn’t marked up; however, if you check Fannie Mae’s weekly yield you’ll see the bank’s markup clear as day. The secondary market is where investors buy and sell mortgage debt for a profit. 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. To get your FREE six-part Mortgage Refinancing Tutorial, visit RefiAdvisor.com using the link below. If you are not familiar with RESPA, it is the Real Estate Settlement Procedures Act that protects borrowers in the United Sates by setting guidelines for disclosure. Every bank does this and because of the loophole in RESPA legislation and no bank will ever disclose how much they have inflated your mortgage interest rate. If you are considering mortgage refinancing with your bank there are several things you need to know to avoid making an expensive mistake. You can learn more about finding the best mortgage loan without overpaying by registering for a free mortgage guidebook. You have good credit and meet every requirement to qualify for a 6.00% interest rate on the wholesale market. Because your bank is exempt from RESPA laws, the bank will never tell you how much your mortgage interest rate has been marked up. No one but the bank knows how much they are profiting by selling your loan; the more they overcharge you for the loan, the more the bank will profit. If you’re familiar with Yield Spread Premium, you know that mortgage companies and brokers mark up your mortgage rate to receive a bonus from the wholesale lenders. The mortgage you take out from the bank is funded entirely by the bank and pooled together with their other loans. Your bank is not legally required to disclose anything beyond the Annual Percentage Rate of your mortgage. Because banks fund their loans with the bank’s money, many people mistakenly think taking out a mortgage from the bank or credit union is going to be cheaper than taking out a retail mortgage loan. Banks and Broker-Banks are a unique type of mortgage originator as they fund their mortgage loans with their own money; Broker-Banks are simply banks pretending to be mortgage brokers. This is most likely a real estate property whose market value is enough to compensate for the amount of the loan, in the event that you fail to pay back the loan within its term. Fortunately for you, there is a way to spot it. You can learn more about refinancing your mortgage while avoiding costly mistakes with a free mortgage tutorial. The Banking Lobby spent millions of dollars to have this law changed excluding banks from disclosure requirements. To do this you'll need to enlist the help of an honest, "Upfront" Mortgage Broker. Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. If you’re familiar with Yield Spread Premium, you know that mortgage companies and brokers mark up your mortgage rate to receive a bonus from the wholesale lenders.

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Article Title: Bank Refinance - Car Refinance - Home Loan Refinance 354

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