korean mortgage market

korean mortgage market
If you are considering refinancing a mortgage with your bank, you should use the following discussion first. The banks are in a special category of mortgage lenders and routinely charge Service Release Premium (SRP) for their loans. What is SRP and why you should avoid banks in total for your next mortgage loan? The answer will surprise you.

Banks and broker-banks are a unique type of mortgage originator funds as their mortgages with their own money, banks, brokers, banks simply pretending to mortgage brokers. All others on the market (mortgage companies and brokers) is a supplier to the retail selling mortgage products for wholesale lenders. Because banks finance their loans with the bank's money, many people mistakenly think that a mortgage from the bank or credit union will be cheaper than the retail mortgage loans.

The ugly truth about banking from the fact that they are exempt from the Real Estate Settlement Procedures Act (RESPA), legislation that protects homeowners from abusive practices by loan, the mortgage lenders, all fees and markup associated with their loans . When RESPA was the draft of the banking lobby campaigned feverishly to be excluded from disclosure laws. Millions of dollars and when to RESPA law, your bank was exempt. This means that the bank you can literally do what they want, and no one is wiser.

What is Premium Service Release?

Bank mortgage loans are often referred to as "Loan Correspondent", because after completing your mortgage banker for the Bank immediately turn around and sell them on the secondary market. Banks earn a premium on the secondary market, by premium service release, and here is how it works. Assuming prevailing mortgage rates are 6.00%. You have good credit and meet all requirements in order for a 6.00% interest rate on the wholesale market. Your bank knows this, but you charge 6.50%. The markup of 6.0% - 6.5% is Service Release Premium. Banks do this because they will receive an additional two points or 2% of the loan balance if the mortgage is on the secondary market. Because banks are exempt from all laws that protect you from RESPA this fleecing, you'll never know it happened.

Each bank has, and because of the loophole in the law and RESPA no bank is always open, how much they inflated your mortgage interest rate. Another problem with the banks is that your bank will be much less likely to negotiate for the terms and interest rates because of the gap. Banks exploit the loopholes in RESPA to their loans seem more favorable with the fees and closing costs, but they hit you with undisclosed SRP markup on your interest rate. Your bank will always quote the highest rate they think you go for.

The essence is that your bank will not be less expensive than other options, your bank will always overcharge you for the mortgage loans. You can learn more about finding the best mortgage loan without overpaying by registering for a free mortgage guide.

To get your free mortgage guide RefiAdvisor.com visit the link below.

Louie Latour specializes in homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need To Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.