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Claim your free mortgage refinance information guide today at: To get your free mortgage guidebook visit RefiAdvisor.com using the link below. 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. Foreclosures provides detailed information on Foreclosures, Bank Foreclosures, Foreclosure Listings, Foreclosure Homes and more. Banks make the majority of their profits from mortgage lending by selling their loans on the secondary mortgage market. Because your bank is exempt from RESPA laws, the bank will never tell you how much your mortgage interest rate has been marked up. Because banks are exempt to all RESPA laws protecting you from this fleecing, you will never know it happened. To get your hands on this "Mortgage Refinancing Toolkit," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com. The markup of your mortgage rate for this reason is called Service Release Premium. It can also keep it as an additional asset, especially when the property is in a prime district. Bank loans don’t have retail markup of this type; however, they mark up mortgage rates to above-market values to boost their profits. 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. If you are considering mortgage refinancing with your bank there are several things you need to know to avoid making an expensive mistake. Simply compare bank rates to those offered by a wholesale mortgage broker and you will quickly understand why bank originated mortgage loans are a bad idea. Banks inflate their mortgage rates with Service Release Premium to boost their profits at your expense. This is the retail markup of your mortgage interest rate when you borrow from a wholesale lender. Banks fall into a special category of mortgage lenders and routinely charge Service Release Premium (SRP) for their loans. Banks are not required to disclose their mark up on your mortgage loan. The first thing you need to know about banks and mortgage loans is that your bank is in the mortgage business to make money. 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). Banks inflate their mortgage rates with Service Release Premium to boost their profits at your expense. 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. Your banker wants you to pay the highest mortgage rate possible so the bank makes the most money selling your loan on the secondary market. To learn more about your mortgage options and common mistakes to avoid, register for a free mortgage guidebook. You can learn more about your mortgage options, including costly mistakes to avoid by registering for a free mortgage refinancing video tutorial. If you’re familiar with Yield Spread Premium, you know that mortgage companies and brokers mark up your mortgage rate to receive a bonus from the wholesale lenders. Because your Bank is exempt from the Real Estate Settlement Procedures Act that requires mortgage lenders to disclose this markup, the only ones that know how much they are overcharging you is the Bank. 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. To get your FREE Mortgage Refinancing DVD, visit RefiAdvisor.com using the link below. Banks exploit the loopholes in RESPA to make their loans seem more affordable with the fees and closing costs; however, they hit you with undisclosed SRP markup on your interest rate. 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. 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. 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.
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