Mortgage : Home Loans : Refinance : Home Equity Loans

By Louie Latour

If you are considering mortgage refinancing with a mortgage broker, there are several things you need to know to avoid overpaying for your loan. Mortgage brokers routinely inflate the interest rates they sell their customers to boost their revenue. Here are several tips to help you save money when refinancing with a mortgage broker.

Mortgage Brokers can be an excellent tool for refinancing your mortgage loan. Brokers have contacts with dozens of lenders and can tailor loan packages to your individual financial situation. It is important to understand how mortgage brokers are compensated to avoid paying double for your new mortgage loan.

When you take out a new loan using a mortgage broker, that person receives the origination fees you pay. Origination fees typically run between 1-1.5% of your loan amount and that fee is more than ample compensation for the amount of work your mortgage broker did. So how does the mortgage broker overcharge you? By inflating the interest rate that the wholesale lender qualified you, the mortgage broker receives an additional 1% of your loan amount for each .25% they overcharge you from the lender.

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For additional Mortgage Refinancing information
and resources visit Mortgage Refinancing.
(http://www.refinance-refinance.net)
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This entry was posted on Thursday, November 30th, 2006 at 3:30 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.