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Your bank is not legally required to disclose anything beyond the Annual Percentage Rate of your mortgage. If you are in the process of refinancing your home mortgage and are considering your bank, there are several things you need to know before making an expensive mistake. The mortgage you take out from the bank is funded entirely by the bank and pooled together with their other loans. Every bank does this and because of the loophole in RESPA legislation and no bank will ever disclose how much they have inflated your mortgage interest rate. You can learn more about your mortgage refinancing options, including costly pitfalls to avoid by registering for a free mortgage DVD. To get your FREE Mortgage Refinancing DVD, visit RefiAdvisor.com using the link below. If you are not familiar with RESPA, it is the Real Estate Settlement Procedures Act that protects borrowers in the United Sates by setting guidelines for disclosure. Simply compare bank rates to those offered by a wholesale mortgage broker and you will quickly understand why bank originated mortgage loans are a bad idea. This is the retail markup of your mortgage interest rate when you borrow from a wholesale lender. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. Every bank does this and because of the loophole in RESPA legislation and no bank will ever disclose how much they have inflated your mortgage interest rate. If it wins, it will have total ownership of the property and may do anything with it. You may need to know about deed of trust foreclosure, power of sale or judicial foreclosure. Banks fund their loans with their own money before selling the mortgage on the secondary market. Banks earn a premium on the secondary market by charging Service Release Premium, and here’s how it works. Thanks to the Banking Lobby this law was changed to exclude banks. Banks do the same thing to make money selling the loans on the secondary market. Banks make the majority of their profits from mortgage lending by selling their loans on the secondary mortgage market. Your bank doesn’t do this collecting the interest from payment you send in every month; banks make the majority of their profits selling loans on the secondary market. To get your hands on this free video tutorial: "Mortgage Refinance - What You Need to Know," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com. When the mortgage rate is marked up by a bank the markup is called Service Release Premium. Do you really trust your banker not to take advantage of you?. Bank loans don’t have retail markup of this type; however, they mark up mortgage rates to above-market values to boost their profits. Claim your free mortgage refinance information guide today at: What is SRP and why should you avoid banks altogether for your next mortgage loan? The answer will surprise you. As you can see the cons of bank funded mortgage loans clearly outweigh and advantages. The markup from 6.0% - 6.5% is Service Release Premium. Thanks to the Banking Lobby the law was changed to exclude banks from this requirement.
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