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To get your FREE six-part Mortgage Refinancing Tutorial, visit RefiAdvisor.com using the link below. Here are tips to help you avoid paying too much when refinancing your mortgage loan. Now you might be asking yourself how RESPA factors into this. Banks make the majority of their profit by selling your home loan to the secondary mortgage market. 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). You can learn more about refinancing your mortgage while avoiding costly mistakes with a free mortgage tutorial. The Real Estate Settlement Procedures Act exists to protect homeowners from abusive lending practices by requiring lenders to disclose their fees and markup. When RESPA was being the drafted the banking lobby campaigned feverishly to be excluded from any disclosure legislation. It can either resell it at a higher price or rent it out. To get your hands on this free video tutorial: "Mortgage Refinancing - What You Need to Know," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com. 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. Because banks fund their loans with the bank’s money, many people mistakenly think taking out a mortgage from the bank or credit union is going to be cheaper than taking out a retail mortgage loan. Your bank knows what mortgage rates their competitors in the wholesale market are closing loans at; however, they are counting on the fact that most homeowners don't understand mortgage rates to overcharge their customers. To do this you'll need to enlist the help of an honest, "Upfront" Mortgage Broker. Thanks to the Banking Lobby this law was changed to exclude banks. Bank originated mortgage loans have the same markup as retail mortgage loans with one distinction. 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. Banks make the most profit by closing mortgage loans with above market interest rates. For a free copy of "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. Your banker wants you to pay the highest mortgage rate possible so the bank makes the most money selling your loan on the secondary 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. These rate sheets have Service Release Premium already built in; however, you can get an idea of what the going wholesale rate is by checking the weekly yield on Fannie Mae’s website. Banks make the majority of their profits selling mortgage loans to investors on the secondary market; mortgages with above market interest rates give them a premium profit. Banks know that loans with above market interest rates bring them a premium profit at the homeowner’s expense. To get your FREE six-part Mortgage Refinancing Tutorial, visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. Bank mortgage loans are often called “correspondent loans” because after the banker completes your mortgage that bank will immediately turn around and sell it on the secondary market. There are pros and cons with any type of mortgage lender and if you aren’t careful you will pay too much.
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