Zen Of Internet Marketing

If you are in the process of refinancing your home loan and want the best mortgage rates there are several things you need to know about Florida mortgage rate quotes. The quotes you find on the Internet and from your mortgage broker include markup that could raise your payment by hundreds of dollars. Here are several tips to help you get the best rate when refinancing without paying too much to the mortgage company or broker.

Beware Yield Spread Premium

The markup of your mortgage rate for a commission is known as Yield Spread Premium. It is simply a percent of your mortgage that is created when you lock and close your loan with above market rates. This percentage is paid to your mortgage company or broker as an incentive for overcharging you.

An Example of Yield Spread Premium

Imagine you’re refinancing your home and your existing mortgage is for $350,000. Your mortgage broker quotes you a rate of 6.5%. You agree to pay a one percent origination fee for the broker’s services meaning you have to come up with $3500 at closing. What your mortgage broker hasn’t told you is that you actually qualified for a 6% mortgage rate and they’ve marked it up for a commission. You get stuck paying too much for your mortgage loan and your broker walks away with an extra $7000 from your lender.

How Does This Change Your Mortgage Payment?

Suppose you refinance your home with a fixed rate mortgage with a 30 year term length. The mortgage your broker told you that you qualified for at 6.5 percent would give you payment of $2,200 per month. If you got the mortgage you qualified for at 6.0% your payment would only be $2,090. That’s a savings of $1,320 per year all because your mortgage broker took advantage of your situation!

It is possible for homeowners who understand Yield Spread Premium to avoid this unnecessary markup and refinance with a wholesale mortgage rate. When you do this it is only necessary to pay a one percent origination fee to the broker. You can do this for yourself by investing a few hours doing your homework and can save yourself thousands of dollars in the process.

Popularity: 16% [?]

Related posts

• Why is The SpiderWeb Marketing System Article Blog FREE
  Why is The SpiderWeb Marketing System Article Blog Site FREE? I use The FREE SpiderWeb Marketing System to expand my online business network because it works wider, faster, and more effectively than any other system. As I'm sure you have discovered, finding leads is difficult. Finding interested leads can sometimes seem just about impossible. That's why The SpiderWeb Marketing System is so amazing. It brings interested leads to me. Go to my Blog site to see more information about this exciting Marketing System.
• Watch International Satellite TV - Future of Satellite Television
  Are you getting bored with the choice of just the national channels on television? Well, in today's context, you can watch international satellite TV and enjoy channels in many different languages other than English. While this technology is available, most families are still unable to experience it since it has thus far been really unaffordable. Read on if you are keen to find a way out.
• Tips on Improving Your Membership Site
  Improving and improving again your membership website is what will keep it dynamic and making a steady and reliable income. It is a law of nature (and the Internet) that everything either grows or dies. Constant improvement of your membership website will insure it grows and lives.
• 11 EASY WAYS TO GET FREE TRAFFIC
  In this world you only have two types of assets: Money and Time. The easiest way to drive traffic to your site is to buy it. But if you are an Internet marketing beginner you probably don't have much money to invest in traffic building. In that case, you will need to invest your time.
• Work At Home Moms - Read This First!
  The internet offers numerous job opportunities to moms who want to stay at home and still earn money. If you are one of the many women all over the world wanting to stay home with your children, but still need to earn money then this may be a good option for you. There are a plethora of jobs on the internet catering to those who want to work from home, which will be discussed here.

Tags: blog, Business, Internet, link, Links, Video

This entry was posted on Monday, May 19th, 2008 at 7:39 am and is filed under Business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.