Mortgage rates and Yield spread!

I just wanted to add my $0.02 about what Mark Barnes wrote in the previous post on my Blog.

Like a Cop would say when they arrest someone: "You have the right to remain silent. Anything you say can and will be used against you in a court of law.". Let me translate this into the Mortgage business: "You have the right to remain silent and you really should. Anything you say WILL be used against you on your next mortgage rate you will get and because you spoke, I will charge you more and you will be happy anyway!".

There you go, you have it!!!

Let me explain what I mean here.

You need to understand what you sign and what you read. You need to educate yourself before you start a refinance or a new purchase.

Some brokers will cut their fees and tell you I cut your fees by $XX amount of dollars! That is great! But they added "Yield Spread" which won't cost you a penny but your rate will go up and the broker will make more money and it will cost you more monthly! But if like many clients you look into a monthly payment only, you might still be happy if you save $250 a month! What you don't know is you could have cut some fees and get a better rate at the same time!

Don't buy everything said to you, not even what I write! Educate yourself!

Search for yield spread on the internet; check how it affects your rate.

Never tell your loan officer you can afford that much dollar a month! Just tell him, show me what you can do and I want to see the GFE! If they don't want to send you a GFE then, change bank or broker!

If you have a question or if you want me to look over your GFE, I'll do it for a small fee that could save you a lot or send me your questions!

Enjoy!