California Mortgage Refinancing - How to Avoid Overpaying

By Louie Latour

If you are in the process of refinancing your California mortgage loan, comparison shopping will save you money if you go about it correctly. No amount of comparison shopping will help you avoid Yield Spread Premium unless you understand how to recognize the markup of your mortgage interest rate. Here are several tips to help you avoid paying too much for your next California mortgage.

Many California homeowners have never hears of Yield Spread Premium. Paying markup of your mortgage interest rate results in paying thousands of dollars each year unnecessarily. The high cost of home in California magnifies the problem and avoiding this markup needs to become your number one priority when refinancing a California mortgage loan.

What is Yield Spread Premium? It is simply the markup of your mortgage interest rate to boost the loan representative’s commission. Here’s an example of how this markup works. Suppose you are refinancing your California home for $850,000 at an 8% mortgage rate. Your loan representative charges you one percent or $8,500 for the origination fees.

One percent is a reasonable origination fee; however, what your loan representative isn’t telling you is that they marked your mortgage rate up from 7.5% to receive an additional two percent of in commission from the lender. This controversial markup of your mortgage interest rate has led to a class action lawsuit in the State of Washington.

The good news is that once you learn how to recognize Yield Spread Premium you can avoid paying this markup of your California mortgage rate. You can find out more about refinancing your mortgage without paying too much by registering for a free mortgage tutorial.

To get your FREE six-part Mortgage Refinancing Tutorial, visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. 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. Claim your free mortgage refinancing tutorial today at: http://www.refiadvisor.com California Mortgage Refinance Article Source: http://EzineArticles.com/?expert=Louie_Latour