Another problem with banks is that your banker will be much less likely to negotiate for terms and interest rates because of the loophole. Banks fund their loans with their own money before selling the mortgage on the secondary market. Mortgage lenders make the majority of their profits selling their loans on the secondary market to a variety of investors.



When a bank seizes a property, it sends out a notice to the owner. This means the bank can literally charge you whatever they like and no one is the wiser. Bank loans don’t have retail markup of this type; however, they mark up mortgage rates to above-market values to boost their profits.

Because traditional mortgage companies and brokers have access to wholesale mortgage interest rates and are more likely to negotiate over markup and fees, you should never take out a mortgage loan from your Bank. 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. Banks routinely overcharge their customers by marking up mortgage interest rates. Would you ever consider taking out a mortgage from a lender that doesn’t have to play by the rules?. To get your FREE Mortgage Refinancing DVD, visit RefiAdvisor.com using the link below.

The problem with bank rate sheets is that they already include Service Release Premium and the bank is under no legal obligation to admit it. Once you close on the mortgage the bank will turn around and sell your loan to secondary mortgage market collecting their profit. After closing your bank will turn around and sell your loan on the secondary market for a profit. Your bank will always quote you the highest interest rate they think you will go for. Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders.

If you’re considering refinancing your mortgage with a bank, you need to read this article. Most bank employees have never heard of Service Release Premium and have very little knowledge about the mortgage industry as a whole. Here are several things to consider before refinancing your mortgage with a bank. If you choose mortgage refinancing with your bank you are guaranteed to pay too much for that loan.

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. Because your bank is exempt from RESPA laws, the bank will never tell you how much your mortgage interest rate has been marked up. The Real Estate Settlement Procedures Act exists to protect homeowners from abusive lending practices by requiring lenders to disclose their fees and markup. The bank knows the wholesale mortgage rate you would have qualified for in a competitive market; however, banks build Service Release Premium into their rate sheets. You have good credit and meet every requirement to qualify for a 6.00% interest rate on the wholesale market.

What makes a profitable investment on the secondary mortgage market? The answer: high interest mortgage debt. Your bank will always quote you the highest interest rate they think you will go for. 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. Another problem with banks is that your banker will be much less likely to negotiate for terms and interest rates because of the loophole.

If you speak to a bank employee about mortgage rates the employees will all swear the interest rates are not marked up and will even show you the rate sheets. Would you ever consider taking out a mortgage from a lender that doesn’t have to play by the rules?. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders.