Your bank is not legally required to disclose anything beyond the Annual Percentage Rate of your mortgage. You can learn more about refinancing your mortgage without paying too much by registering for a free mortgage toolkit. Thanks to the Banking Lobby this law was changed to exclude banks. They will swear to you that the interest rate is not marked up in any way and even show you the bank’s rate sheets.
Because banks are exempt to all RESPA laws protecting you from this fleecing, you will never know it happened. 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. 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.
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. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. • Bank Loans are Convenient • Bankers are Less Likely to Use Pressure Sales Tactics • You May Already Have a Relationship with Your Banker.
• 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. As you can see the cons of bank funded mortgage loans clearly outweigh and advantages.
But you need not be an expert at real estate laws. To get your free mortgage guidebook visit RefiAdvisor.com using the link below. The only way to spot this markup that your bank includes in their rate sheets is to find out what the going wholesale mortgage rates are.