Don't expect bank employees to admit their rates are inflated; most bank employees know very little about mortgage rates and will swear the bank rates are not marked up. These brokers charge a flat origination fee for their services without inflating mortgage rates like the banks. Banks inflate their mortgage rates with Service Release Premium to boost their profits at your expense. 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.
These rate sheets have Service Release Premium already built in; however, you can get an idea of what the going wholesale rate is by checking the weekly yield on Fannie Mae’s website. To get your free mortgage guidebook visit RefiAdvisor.com using the link below. 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.
• Bank Loans are Convenient • Bankers are Less Likely to Use Pressure Sales Tactics • You May Already Have a Relationship with Your Banker. Banks make the majority of their profit by selling your home loan to the secondary mortgage market. Do you really trust your banker not to take advantage of you?.
Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. Banks inflate their mortgage rates with Service Release Premium to boost their profits at your expense. Simply compare bank rates to those offered by a wholesale mortgage broker and you will quickly understand why bank originated mortgage loans are a bad idea. 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.
You can compare your bank’s inflated mortgage interest to the weekly yield on Fannie Mae’s website to get an idea of the markup. How does the bank accomplish this? They do it by charging you Service Release Premium. Bank mortgage loans are often called “correspondent loans” because after the banker completes your mortgage that bank will immediately turn around and sell it on the secondary market.
For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Aside from the fact that Banks don’t have to play by the rules your bank has a dirty little mortgage secret.
Banks earn a premium on the secondary market by charging Service Release Premium, and here’s how it works. If you want to try your hand at this business, visit your local bank and have someone explain to you how buying a foreclosed property works. To get your hands on this free video tutorial: "Mortgage Refinance - What You Need to Know," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com.
If you’re considering refinancing your mortgage with a bank, you need to read this article. Your bank knows what mortgage rates their competitors in the wholesale market are closing loans at; however, they are counting on the fact that most homeowners don't understand mortgage rates to overcharge their customers.
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