To learn more about your mortgage options and common mistakes to avoid, register for a free mortgage guidebook. Your loan representative will show you the bank’s rate sheets and swear the interest rate isn’t marked up; however, if you check Fannie Mae’s weekly yield you’ll see the bank’s markup clear as day. It can also keep it as an additional asset, especially when the property is in a prime district. Your Bank may seem like a convenient way of refinancing your mortgage loan; however, Banks have secret when it comes to disclosing information about their fees and markup. 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. Claim your free mortgage refinance information guide today at: Bank mortgage rate sheets also have Service Release Premium built into their interest rates. Banks make the most profit by closing mortgage loans with above market interest rates. 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. You can learn more about your mortgage options, including costly mistakes to avoid by registering for a free mortgage refinancing video tutorial. You can learn more about refinancing your mortgage while avoiding costly mistakes with a free mortgage tutorial. You have good credit and meet every requirement to qualify for a 6.00% interest rate on the wholesale market. 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. These brokers charge a flat origination fee for their services without inflating mortgage rates like the banks. 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 and Broker-Banks are a unique type of mortgage originator as they fund their mortgage loans with their own money; Broker-Banks are simply banks pretending to be mortgage brokers. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. 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. Banks routinely overcharge their customers by marking up mortgage interest rates. If you are considering mortgage refinancing with your bank there are several things you need to know to avoid making an expensive mistake. While it’s true that bank mortgage loans are convenient, there are a number of compelling reasons for avoiding your bank all together. While banks are a convenient way of getting a new mortgage and are much less likely to try and use high pressured sales tactics on you, you are limited to the Bank only mortgage products. 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. Banks and Broker-Banks are a unique type of mortgage originator as they fund their mortgage loans with their own money; Broker-Banks are simply banks pretending to be mortgage brokers. These brokers charge a flat origination fee for their services without inflating mortgage rates like the banks. 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.