| If you are in the process of refinancing your California | | | | refinancing is approved by a wholesale lender, you |
| mortgage and are not familiar with Yield Spread | | | | qualify for a specific mortgage rate. Your Mortgage |
| Premium, you risk overpaying thousands in | | | | Company or broker receives a guarantee of that |
| unnecessary mortgage interest every year. Learning | | | | mortgage rate from the wholesale lender. What your |
| how mortgage companies and brokers make their | | | | loan representative isn't telling you is that they receive |
| money will help you avoid paying too much for your | | | | a bonus from the wholesale mortgage lender for |
| new California mortgage loan. Here is an introduction to | | | | every .25% that they get you to overpay. |
| Yield Spread Premium and several tips to help you | | | | Suppose you qualify for a 6.5% mortgage on a |
| avoid paying it when refinancing your mortgage. | | | | $300,000 California mortgage loan. Your loan |
| Did you know that the HUD Secretary recently stated | | | | representative charges you 1.5% of the loan amount |
| that American homeowners overpay $16 billion dollars | | | | for the origination fee which you think is reasonable. |
| of unnecessary mortgage interest every year? The | | | | This means you have to pay $4,500 to the Mortgage |
| reason this is happening is the little known markup of | | | | Company or broker at closing for their part in arranging |
| retail mortgage interest rates called Yield Spread | | | | your loan. What your loan representative didn't tell you |
| Premium. | | | | is that you really qualified for a 6.0 percent mortgage |
| What is Yield Spread Premium? Simply put, it is the | | | | and they marked it up because the wholesale lender |
| markup of your mortgage interest rate by your loan | | | | pays them 1% of your loan amount for each additional |
| originator. Mortgage companies and brokers do this to | | | | .25% you agreed to overpay. |
| line their pockets at your expense. When you | | | | Your loan originator walks away from the deal with |
| refinance your California mortgage loan you're already | | | | the $4,500 you paid in origination fees plus a $6,000 |
| paying the mortgage company or broker an origination | | | | bonus from the wholesale lender for lying to you. This |
| fee for their services; however, like used car salesman | | | | markup of your California mortgage interest rate is |
| these people try and squeeze every penny they can | | | | called Yield Spread Premium and if you agree to it, |
| out of you. I'm not here to throw stones at mortgage | | | | you'll pay thousands of dollars in unnecessary |
| brokers, and I'm not saying every loan representative | | | | mortgage interest every year. How do you avoid |
| out there would swindle your mother out of her Social | | | | paying Yield Spread Premium when refinancing your |
| Security check, but most would. | | | | California mortgage loan? You can learn this and other |
| Here's how Yield Spread Premium on your California | | | | costly mortgage mistakes to avoid with a free |
| mortgage works. When your application for mortgage | | | | mortgage tutorial. |