Mortgage Refinancing: Understanding Mortgage Jargon Will Save You Money

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Mortgage Refinancing: Understanding Mortgage Jargon Will Save You Money
(presented by www.refinance-refinance.net - mortgage lenders)

By Louie Latour

If you are considering mortgage refinancing for any reason, doing your homework and learning the lingo will save you thousands of dollars. Much like used car salesman, mortgage companies and brokers inflate their interest rates based on how knowledgeable they perceive you to be. Understanding how retail mortgage markup works and using the lingo correctly will help you avoid overpaying for your new mortgage. Here are several tips to help outsmart your mortgage company or broker to avoid paying too much when mortgage refinancing.

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Mortgage refinancing can be an overwhelming process for any homeowner. Not only are you bombarded with terminology, you have to worry about being taken advantage of by your mortgage company or broker. Mortgages are commodity products just like used cars. Just like purchasing a used car, when you take out a mortgage loan there is always someone trying to make a buck by overcharging you. The problem is instead of a buck, this person will make thousands of dollars at your expense, if you let them.

The most important term you need to learn before mortgage refinancing is Yield Spread Premium or YSP. When a mortgage retailer (all mortgage companies and broker are retail vendors for wholesale mortgage lenders except for banks) gives you a written guarantee for a mortgage interest rate, this written guarantee includes retail markup, or YSP. Here

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This entry was posted on Tuesday, November 21st, 2006 at 3:19 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.

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