Mortgage Refinance Rates

97% Of American Homeowners Overpay Their Lender In Mortgage Interest Every Month.
If you own a home, have just re-financed or are shopping for a mortgage, you’ll be outraged.

Housing: Americans across the country were shocked to hear of a new poll that states 97% of homeowners here in America are overpaying millions of dollars each month in mortgage interest.

The National poll was conducted last month to determine how many homeowners take advantage of the prepayment loophole in our mortgage system, which eliminates costly interest overpayments.

The shocking results showed only 3% of America’s homeowner population utilize this loophole and take advantage of the valuable benefits created by it.

When Sean Drover, a Chicago businessman and homeowner found out he was overpaying $217 in mortgage interest every month, he was appalled.
“Honestly, I was sick to my stomach when I thought back on all the monthly payments I’d made. If I would have known about the pre-payment loophole when I first bought my home I could have put all that money into equity instead of my lenders pocket.”

The problem lies with what the banking industry calls “front loading”. This is when the majority of a homeowner’s payment is applied towards the interest on the loan instead of the original amount borrowed.

The disturbing fact about front loading is it ensures you’ll pay over three times the original amount borrowed. Thus, resulting in enormous profits coming straight out of your pocket and directly into your lenders.

Most people (97%) never stop and take a good look at how damaging the system really is. Unfortunately, it’s just the way conventional mortgages are structured here in America.

Average Homeowner overpays $60,000

In fact, the average homeowner in America is overpaying $2000 in mortgage interest every year, or $60,000 over the life of the mortgage.

“That’s an enormous amount of money”. Says top mortgage analyst, Craig Romero. This is money that homeowners are needlessly giving away each year. Imagine what a person could do with an extra $60,000.

While gaining back thousands of dollars from these overpayments is a huge benefit, it’s not the only one. Cutting up to 10 years from the term of a traditional mortgage is also another major advantage.

“I’ve been using the prepayment loophole for years”. Says Denver homeowner, Curtis Landau. “I’ve actually been able to remodel my home and pocket about $25,000 all from the equity that was built so quickly.”

Americans must understand this prepayment loophole isn’t something lenders are eager to share with their customers. If they did, they would risk taking a huge cut in profits.

With over 50 million mortgages in force, it’s estimated Americans overpay their lenders in excess of $12 billion every year. It’s no wonder this loophole is kept secret’ lenders are undoubtedly getting rich off these interest overpayments. Useful guide for you here : mortgage refinance rates, home equity rates, 2nd Mortgage Rate, Mortgage Rates Comparison, Mortgage Rates 30 year fixed, Home Loan Mortgage Rate, Mortgage Rate Quote, A Personal Mortgage Experience, 5 Criteria To Get Your Home Loan Mortgage approved, Deadly Mistakes When Applying for a Mortgage, and Refinancing Your Home Mortgage Loan With Bad Credit.
Written by Craig Romero
Craig Romero is an author and mortgage analyst dedicated to helping homeowners maximize the investment in their homes.

Deadly Mistakes When Applying for a Mortgage

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“…avoid disappointment and SAVE thousands by taking a few minutes to acquaint yourself with these potential mistakes..”

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Not Knowing How Much Money You Can Put Down
It’s important to know how much you can afford to pay in down payment and closing costs when you apply for your mortgage. The more you put down the better rates and terms you’re likely to get. At the same time you also need to stay within your means and comfort level.

Working With A Mortgage Broker Who Has A Poor Performance Record
Industry insiders know that the most common reason that a sale fails to go through is that the mortgage fails to go through. Ask your mortgage broker about her/his performance guarantee.

Not Understanding The Process
Most of us don’t shop for a mortgage very often. As a result it isn’t something we become familiar with. Work with a mortgage broker who will take the time to answer your questions and uses terms you understand.

Working With A Lender Who has Only One Investor

Not all lenders have a range of options when it comes to investors. What if that investor doesn’t offer the type of mortgage you need? Or worse yet, what if you need to change loan products after you’ve started the process? Working with a mortgage broker who has many investors enables you to address these issues without starting the process over again.

Making Large Purchases Prior to Your Mortgage Application
Many people think that it is in their best interest to get large purchases completed prior to applying for their mortgage. As total debt is a key component in determining the amount of home you qualify (home equity rates) for it is best to wait until after your home purchase has closed to make such purchases.

Over Shopping Your Loan
Each time you call a lender seeking the best possible rate and terms you have your credit report pulled. Every time your credit report is pulled you risk decreasing your credit score and thus possibly decreasing the likelihood of getting the best rate and terms. Experts recommend that you select a mortgage broker with a number of investors and do your shopping with her/him.

Hiding Things From Your Mortgage Broker
Most of us have experienced times of financial difficulty at some point. While it can be embarrassing to discuss issues like this, your mortgage broker is there to help you get loan approved despite such issues. Your mortgage broker can only help you with those things with which s/he is aware.

Making Late Payments
Late payments, especially those within the last year, can be very detrimental to getting the best rate, terms and even the difference of being approved at all. While this might seem like unnecessary advice, ALWAYS pay on time.

Over Using Credit Cards
Credit cards are a convenient way to make purchases, but if not paid off or balances kept low you might find it more difficult to get the best rates and terms on your mortgage. Keeping your total debt as low as possible helps you get the mortgage that best meets your specific needs.

Cosigning On Someone Else’s Loan
While it can be a great service to a friend or loved one, signing to guarantee someone else’s loan is often a big head ache for the cosigner. Before cosigning you decide if you’re willing and/or able to assume the liability.

Not Getting All The Facts
It is important to learn the total cost of your mortgage loan, both at closing and for the life of the loan. While mortgages can look a lot alike there can be subtle differences which can save or cost you thousands of dollars. Get all the facts and know what to expect.

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Mortgage regulations have changed significantly over the last few years, making your options wider than ever. Subtle changes in the way you approach mortgage shopping, and even small differences in the way you structure your mortgage, can cost or save you literally thousands of dollars and years of expense.

Get the Right Information – Whether you are about to buy your first home, or are planning to make a move to your next home, it is critical that you be informed about the factors involved.

Everyday people have their mortgage loan turned down because of one or more of these mistakes. By taking these few minutes to acquaint yourself with the “Deadly Mistakes When Applying For A Mortgage” you can save thousands on your mortgage.