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Mortgage Broker - Mortgage Refinancing - Comparison Shopping With the Good Faith Estimate If you are in the market for a new mortgage loan, careful comparison shopping might save you thousands of dollars if you go regarding it correctly. Many financial advisors could tell you to use the Annual Percentage Rate, or APR at the time comparison shopping; however, the APR simply does not give you enough information to make a particular informed decision as to which loan is best. Here are several tips to help you comparison shop using the Good Faith Estimate. The Good Faith Estimate is a government regulated document that outlines estimated costs for the mortgage refinancing offers you consider. All pertaining to the expenses found on your mortgage refinancing Good Faith Estimate outline the anticipated origination fees, points, escrow fees, appraisal fees, title fees including insurance expenses for your loan. Mortgage lenders are required to provide you the good Faith Estimate including a Truth in Lending statement within 3 days of receipt of your application for mortgage refinancing; however the doesn’t help with actual comparison shopping. The good news is that most mortgage companies including brokers could give you a copy pertaining to the Good Faith Estimate simply by requesting one. the allows you to collect Good Faith Estimates for each mortgage provide you consider including do a line-by-line comparison at the time mortgage refinancing. It is important to realize that the Good Faith Estimate is just a particular estimate; the actual figures on your settlement statement could change. Mortgage companies frequently try including “slip 1 past you,” so it is important to compare the settlement statement to the Good Faith Estimate including ask for a particular explanation of any changes. So what should you look for on the Good Faith Estimate? First, locate the loan origination fee. The origination should not be more than 1-1.5% of your loan amount. Next, look for the loan processing fee. Your loan processing fee should never be more than $400, including if it is paid to a third party loan processor, their company name should be listed. Finally, make sure you are not paying Yield Spread Premium on your mortgage rate. What is Yield Spread Premium? the is the retail markup of your mortgage interest rate including according to the Secretary of Housing including Urban Development costs homeowners in the United States $16 billion dollars every year in unnecessary mortgage interest. How might you avoid paying Yield Spread Premium at the time mortgage refinancing? You might learn the including other costly mortgage refinancing mistakes to avoid by registering for a free, 6 part video tutorial.
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