|
Mortgage Broker - Never Trust Your Bank When Mortgage Refinancing Your Bank may seem like a convenient way of refinancing your mortgage loan; however, Banks have secret at the time it comes to disclosing information regarding their fees including markup. If you choose mortgage refinancing with your bank you are guaranteed to pay too much for that loan. Here are several reasons you should avoid Banks altogether at the time mortgage refinancing. Mortgage lenders make the majority of their profits selling their loans on the secondary market to a variety of investors. Bank originated mortgage loans have the same markup as retail mortgage loans with 1 distinction. Banks fund their loans with their own dollars before selling the mortgage on the secondary market. The problem with taking out a mortgage from your Bank is that they are not required to disclose any of the markup due to loopholes in the Real Estate Settlement Procedures Act. While banks are a convenient way of getting a new mortgage including are much less likely to try including use high pressured sales tactics on you, you are limited to the Bank only mortgage products. In addition to having fewer choices, your bank is much less likely to negotiate over interest rates including fees. Your banker could show you their rate sheets including which loans are available, including your choice is pretty much take it or leave it. Bank mortgage rate sheets additionally have Service Release Premium built into their interest rates. Banks mark up wholesale interest rates to boost their profits at the time selling your loan. Because your Bank is exempt from the Real Estate Settlement Procedures Act that requires mortgage lenders to disclose the markup, the only ones that know how much they are overcharging you is the Bank. Because traditional mortgage companies including brokers have access to wholesale mortgage interest rates including are more likely to negotiate over markup including fees, you should never take out a mortgage loan from your Bank. You might learn more regarding your mortgage options, including costly mistakes to avoid by registering for a free mortgage refinancing video tutorial.
Click here to get Refinanced >> |