Escondido Refinance - Home Loan Refinance - Florida Refinance 745 (economic money)

July 30th, 2008 admin Posted in finance |

By Alex Refintage

What is SRP and why should you avoid banks altogether for your next mortgage loan? The answer will surprise you. Banks exploit the loopholes in RESPA to make their loans seem more affordable with the fees and closing costs; however, they hit you with undisclosed SRP markup on your interest rate. Banks make the majority of their profit by selling your home loan to the secondary mortgage market. But you need not be an expert at real estate laws. Here are several reasons you should avoid Banks altogether when mortgage refinancing. To get your hands on this free video tutorial: "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. Banks mark up wholesale interest rates to boost their profits when selling your loan. You can learn more about your mortgage refinancing options, including costly pitfalls to avoid by registering for a free mortgage DVD. It can also keep it as an additional asset, especially when the property is in a prime district. The first thing you need to know about banks when considering a bank originated mortgage is that banks are exempt from the Real Estate Settlement Procedures Act (RESPA). After closing your bank will turn around and sell your loan on the secondary market for a profit. When you apply for a loan form the bank, you are required to put up a pledge for security for the loan. 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. Limited Number of Loan Products to Choose From No Room for Negotiation on Your Interest Rate Interest Rates Are Always Higher Banks Are Not Willing to Negotiate Lender Fees and Closing Costs Banks are Exempt from Disclosure Rules Provided by the RESPA Act. There many people, some are housewives and once-a-week agents who have earned a lot from making the buying and selling of foreclosed properties a hobby. Another problem with banks is that your banker will be much less likely to negotiate for terms and interest rates because of the loophole. To get your hands on this free video tutorial: "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. Aside from the fact that Banks dont have to play by the rules your bank has a dirty little mortgage secret. These brokers charge a flat origination fee for their services without inflating mortgage rates like the banks. Banks make the most profit by closing mortgage loans with above market interest rates. A little known loophole in the Real Estate Settlement Procedures Act could cost you thousands of dollars in unnecessary mortgage interest. Do you really trust your banker not to take advantage of you?. Because banks are exempt to all RESPA laws protecting you from this fleecing, you will never know it happened. 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.