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. How does the bank accomplish this? They do it by charging you Service Release Premium. Here are several tips to help you avoid overpaying for your next mortgage. Your banker will show you their rate sheets and which loans are available, and your choice is pretty much take it or leave it. To get your FREE six-part Mortgage Refinancing Tutorial, visit RefiAdvisor.com using the link below. 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. There many people, some are housewives and once-a-week agents who have earned a lot from making the buying and selling of foreclosed properties a hobby. If you’re considering refinancing your mortgage with a bank, you need to read this article. Banks are different from traditional mortgage originators because they close on loans in their own name. A little known loophole in the Real Estate Settlement Procedures Act could cost you thousands of dollars in unnecessary mortgage interest. While it’s true that bank mortgage loans are convenient, there are a number of compelling reasons for avoiding your bank all together. Your banker will show you their rate sheets and which loans are available, and your choice is pretty much take it or leave it. Here are tips to help you avoid paying too much when refinancing your mortgage loan. This means the bank can literally charge you whatever they like and no one is the wiser. The mortgage you take out from the bank is funded entirely by the bank and pooled together with their other loans. The bottom line is that your bank will not be less expensive than other options; your bank will always overcharge you for the mortgage loan. How does the bank accomplish this? They do it by charging you Service Release Premium. Because banks are exempt to all RESPA laws protecting you from this fleecing, you will never know it happened. Here are several tips to help you avoid overpaying for your next mortgage. Millions of dollars changed hands and when RESPA became law, your bank was exempt. The Real Estate Settlement Procedures Act (RESPA) protects homeowners from abusive lending practices by requiring mortgage lenders to disclose all of the fees associated with their loans. The lobby spent millions of dollars romancing Congress to give banks an unfair advantage over their customers. After closing your bank will turn around and sell your loan on the secondary market for a profit. Most bank employees have never heard of Service Release Premium and have very little knowledge about the mortgage industry as a whole. 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. 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. Banks routinely overcharge their customers by marking up mortgage interest rates. What makes a profitable investment on the secondary mortgage market? The answer: high interest mortgage debt. If you’ve been researching mortgage loans online you may have heard of Yield Spread Premium. 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).