Banks make the majority of their profit by selling your home loan to the secondary mortgage market. RESPA laws in the United States protect you by requiring mortgage lenders to disclose their profit margin and markup on your loan. The markup of your mortgage rate for this reason is called Service Release Premium. The problem with taking out a mortgage from your Bank is that they are not required to disclose any of this markup due to loopholes in the Real Estate Settlement Procedures Act. You have good credit and meet every requirement to qualify for a 6.00% interest rate on the wholesale market. After closing your bank will turn around and sell your loan on the secondary market for a profit. Bank loans don’t have retail markup of this type; however, they mark up mortgage rates to above-market values to boost their profits. You can learn more about refinancing your mortgage while avoiding costly mistakes with a free mortgage tutorial. The problem with taking out a mortgage from your Bank is that they are not required to disclose any of this markup due to loopholes in the Real Estate Settlement Procedures Act. Because your Bank is exempt from the Real Estate Settlement Procedures Act that requires mortgage lenders to disclose this markup, the only ones that know how much they are overcharging you is the Bank. How does the bank accomplish this? They do it by charging you Service Release Premium. Your banker will show you their rate sheets and which loans are available, and your choice is pretty much take it or leave it. When a bank seizes a property, it sends out a notice to the owner. You can compare your bank’s inflated mortgage interest to the weekly yield on Fannie Mae’s website to get an idea of the markup. You can learn more about finding the best mortgage loan without overpaying by registering for a free mortgage guidebook. Banks inflate their mortgage rates with Service Release Premium to boost their profits at your expense. No one but the bank knows how much they are profiting by selling your loan; the more they overcharge you for the loan, the more the bank will profit. Your banker will show you their rate sheets and which loans are available, and your choice is pretty much take it or leave it. Everyone else in the marketplace (mortgage companies & brokers) is a retail vendor that sells mortgage products for wholesale lenders. Banks earn a premium on the secondary market by charging Service Release Premium, and here’s how it works. When you apply for a loan form the bank, you are required to put up a pledge for security for the loan. When you apply for a loan form the bank, you are required to put up a pledge for security for the loan. The lobby spent millions of dollars romancing Congress to give banks an unfair advantage over their customers. Banks make the majority of their profit by selling your home loan to the secondary mortgage market. 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. Bank mortgage rate sheets also have Service Release Premium built into their interest rates. Because your Bank is exempt from the Real Estate Settlement Procedures Act that requires mortgage lenders to disclose this markup, the only ones that know how much they are overcharging you is the Bank. The Banking Lobby spent millions of dollars to have this law changed excluding banks from disclosure requirements. 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. Fortunately for you, there is a way to spot it. 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.