Username:   Remember Me
Password:  

Uber Articles {Über (ger) adj. above, beyond }

- Above and Beyond a Mere Article Directory

 
 

Do You Need Tips To Save Your Home?

By Bryan Nomac

When shopping for a refinance mortgage lender to refinance your home, there are a number of things you should know beforehand in order to not get ripped off by a seemingly innocent-looking mortgage broker. Mortgage brokers always (almost always) mark up your interest rate in order to receive a bigger commission from the mortgage lender that they represent.

Some tips if you’re considering refinancing for the holidays:

1) Find a good rate. Do some checking around in your local area and find out what the going wholesale rate is for mortgage loans and mortgage refinancing. Most (if not all) local banks will be lending at rates higher than the local wholesale rate. If you come into the process knowing what that rate is, you may stand a chance of getting a much better rate on your mortgage.

Most standard mortgages have terms of 15 or 30 years; however, nowadays, there are terms available of forty or even fifty years. If you are extending the term of your loan, you will be paying a lower amount per month, but since you are paying that payment for many more months, your total overall paid amount could be substantially higher than before you refinanced.

Here’s an example of how the Yield Spread Premium works: Say, for example, you’re getting a loan for $200,000. The originating lender approves you at 5.5%. However, your broker marks that up to 6.75% without telling you. Now, of course, you’re paying a few hundred more each month in interest; over the life of your loan you’ll be out thousands of dollars. But it gets better. that 1.25% difference in what you go approved for and what you’re going to be paying — that’s the Yield Spread Premium. And for each 0.25% that the broker increases your loan interest rate, the broker gets 1% (of the original loan amount) up front — as a useless commission. In this example, he’s getting $10,000 in addition to the $2,000 loan origination you’ve paid. Now that you know about the Yield Spread Premium, avoid it at all cost.

There are more articles about, obama adjustment of mortgage and obama adjustment of mortgage that can help you further

Article kindly provided by UberArticles.com

Topics: Real Estate | Comments Off

Tags: , ,


Article Citation
MLA Style Citation:
Nomac, Bryan "Do You Need Tips To Save Your Home?." Do You Need Tips To Save Your Home?. 24 Jul. 2010. uberarticles.com. 9 Jan 2016 <http://uberarticles.com/real-estate/do-you-need-tips-to-save-your-home/>.

APA Style Citation:
Nomac, B (2010, July 24). Do You Need Tips To Save Your Home?. Retrieved January 9, 2016, from http://uberarticles.com/real-estate/do-you-need-tips-to-save-your-home/

Chicago Style Citation:
Nomac, Bryan "Do You Need Tips To Save Your Home?" uberarticles.com. http://uberarticles.com/real-estate/do-you-need-tips-to-save-your-home/


Reprint Rights

Creative Commons License
This article is subject to a revocable license under a Creative Commons Attribution-No Derivative Works 3.0 Unported License, which means you may freely reprint it, in its entirety, provided you include the author's resource box along with LIVE VISIBLE links (without "nofollow" tags). We may revoke the license at any time with or without cause. You must also include the credit to UberArticles.com.

Comments are closed.

Disclaimer
Uber Articles and its partner sites cannot be held responsible for either the content nor the originality of any articles. If you believe the article has been stolen from you without your permission, please contact us and we will remove it immediately. If you have a problem with the accuracy or otherwise of the content of an article, please contact the author, not us! Also, please remember that any opinions and ideas presented in any of the articles are those of the author and cannot be taken to represent the opinions of Uber Articles. All articles are provided for informational purposes only. None of them should be relied upon for medical, psychological, financial, legal, or other professional advice. If you need professional advice, see a professional. We cannot be held responsible for any use or misuse you make of the articles, nor can we be held responsible for any claims for earnings, cures, or other results that the article might make.
  • RSS Feed

    RSS for Real Estate