My Way Lending

Most reverse mortgage options have left the market, victims of the global credit crunch. Yet the biggest player with the longest history still remains, and it pushed the industry into positive growth territory for the 19th straight year.

More than 700 members of the National Reverse Mortgage Lenders Association gathered in Los Angeles for the group’s annual meeting to discuss new ideas, review statistics and hear a year-end assessment by outgoing Federal Housing Administration Commissioner Brian Montgomery.

While the 4.3 percent increase in the number of FHA-insured reverse mortgages was down significantly from previous years, it bettered the negative numbers of conventional loans. The FHA is a component of the Department of Housing and Urban Development and now the main player in the conventional and reverse mortgage markets.

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Post from: Reverse Mortgage Loan Blog

Even now, reverse mortgages a viable option

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If you’re searching for information on the Internet to help you refinance your home loan, you’re probably concerned about paying too much for the new mortgage. Most homeowners understand how mortgage rates affect their monthly payment amount but not many know their mortgage rates are marked up to give a commission to the broker.

Here are several tips to help you avoid this unnecessary markup of your mortgage rate while avoiding lender junk fees.

The commission based markup of your mortgage rate is known as Yield Spread Premium (YSP). Simply put, YSP is a percentage of your loan amount paid by the lender when your mortgage broker locks and closes your mortgage with a higher than necessary mortgage rate. Lenders pay a commission to brokers for overcharging homeowners because these loans bring a premium profit when sold to investors on the secondary mortgage market.

Here’s a simple example of Yield Spread Premium. Suppose you’re refinancing your home for $150,000 and the broker tells you the lender approved your loan at 6.75%. You agree to pay the broker a 3% origination fee for their services and walk away with a monthly payment of $972 per month. What your mortgage broker didn’t tell you is that the lender actually approved your for a 6.0% mortgage rate which would have saved you $75 per month…that’s $900 per year you’re throwing away because your mortgage broker lied to you. In this example a lie of omission is still a lie right?

Refinance My Home Loan Today

Yield Spread Premium sounds like a scary technical term, but that’s really all there is to it. The HUD Secretary was quoted saying American homeowners will overpay almost sixteen billion dollars this year alone and Yield Spread Premium is responsible. It is possible however to refinance your home loan without paying this unnecessary markup. There are honest mortgage brokers out there willing to work for a flat origination fee of one percent without inflating your mortgage rate. The free videos available on this website will not only show you how to find this person but how to avoid lender junk fees. When you register for the refinancing videos you’ll also get a list of recommended mortgage brokers in your area to help get you on the right track.

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I’m sad to share news that you’ve likely already heard, that Calculated Risk’s “Tanta” has passed away.  Doris Dungey (aka Tanta) was 47 and lost her battle with cancer.

Tanta was a hero of mine - she wrote with clarity, experience, wit and insight that I always admired.  I believe whole-heartedly that she was the best of the financial bloggers that have been covering this meltdown for years.

She was greatly respected and will be fondly remembered.  While I never met her, I did correspond via email with her and she was smart, sharp and warm in those exchanges.  I wish her and her family peace.  Thank you Tanta for opening the eyes of literally millions and bringing an insight that would have otherwise been lost.  You will be deeply missed.

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