Mortgage : Home Loans : Refinance : Home Equity Loans

By Louie Latour

Mortgage refinancing has the potential to save you money if done correctly. Homeowners make a number of costly mistakes when refinancing their loans that can result in overpaying thousands of dollars for the new mortgage. Here are several tips to show you what reasonable mortgage refinancing expenses are and how to avoid costly mortgage mistakes.

Mortgage Refinancing: Compare Closing Costs

Whenever you take out a new mortgage loan you will be required to pay closing costs. How much you pay at closing varies from one lender to the next and is subject to negotiation. In addition to closing costs you will be required to pay origination fees to the company that originates your loan. When you comparison shop for a new mortgage it is extremely important to compare all aspects of the loans and not get hung up on interest rates.

Mortgage Refinancing: Avoid the Hidden Cost of Yield Spread Premium

All retail mortgage companies and brokers inflate the interest rate guaranteed to you by the wholesale lender. These companies do this in order to receive a bonus from the wholesale lender of 1 point for every .25% they overcharge you. The difference between the interest rate you qualify with the wholesale lender and the mortgage company or broker mark up is called Yield Spread Premium (YSP). Because you are already paying origination fees to the Mortgage Company or broker, by paying Yield Spread Premium you are effectively paying double for your new mortgage loan. Homeowners that do their homework can learn how to recognize YSP and avoid paying it.

You can learn more about mortgage refinancing and avoiding costly mistakes like paying Yield Spread Premium by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and pre! datory l enders. 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. Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com Mortgage Refinance Information

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For additional Mortgage Refinancing information
and resources visit Mortgage Refinancing.
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This entry was posted on Sunday, November 19th, 2006 at 6:19 am and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.