Mortgage : Home Loans : Refinance : Home Equity Loans

By Louie Latour

Comparison shopping when mortgage refinancing can save you thousands of dollars in unnecessary interest and junk fees. It is important to know what to look for when shopping for a mortgage, doing your homework before you apply will help you spot a good deal when you find one. Here are several tips to help you comparison shop and avoid costly mistakes when mortgage refinancing.

When you comparison shop for mortgage lender, the Annual Percentage Rate is a good starting point for making a comparison; however, it does not give you enough information to make an informed decision as to which mortgage loans are best. In order to make the best comparison of mortgage offers you need to request a copy of the Good Faith Estimate from each lender and do a line-by-line comparison of each loan offer.

Lenders are required to provide you a copy of the Good Faith Estimate within three days of receiving your application; however, this does not help you when comparison shopping. Most mortgage lenders will give you a copy just by asking. If a mortgage company or broker refuses to provide this document without your application, scratch them off your list. When comparison shopping for a mortgage loan there are also a few things you need to tell any prospective mortgage companies or brokers before submitting your application.

You need to tell each mortgage company or broker that you will pay no more than 1-1.5% of your loan amount for the origination fee. Make sure the mortgage company is not charging you more than $400 for the loan processing fee. The next thing you need to tell your mortgage company or broker is that you will pay reasonable closing costs but will not pay any retail markup of your mortgage interest rate.

This markup is called Yield Spread Premium will result in paying thousands of dollars in unnecessary mortgage interest every year. Ask the mortgage company to see the original interest rate guarantee from the wholesale lender. Comparing this guarantee with the written guara!
ntee pro
vided by your mortgage company will show you the markup. If your mortgage company or broker refuses to remove this retail markup of your interest rate, find another mortgage company that will

You can learn more

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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 Friday, December 15th, 2006 at 6:30 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.