Insurance Premiums

Learn To Read A Lender Rate Sheet & Beat Mortgage Brokers At Their Own Game!
By Rob K. Blake - The Mortgage Insider

Term Life Insurance Policy Understanding how to price out a loan by reading our Bank Rate Sheets is really quite easy though it may seem intimidating at first. All of our lenders furnish us with rate sheets on a daily basis via the internet or by fax. We follow the rates several times a day in order to properly quote and/or lock the best available rate and term to our customers. When reviewing the rate sheet, we also determine which rate will NOT create a rebate from the lender known as a Yield Spread Premium. We believe upping your rate to make additional revenue over the 1% origination fee is deceptive, dishonest, and a bad business practice.believe me
other's don't hold that opinion.

Online only mortgages is a relatively new sector of the mortgage market, and one that is set to surge in popularity, according to new findings by the insurance broker turned lender Direct Line . Direct Line mortgages have today announced the launch of their first online mortgage product . They researched the market thoroughly, and have found that personal contact remains an important part of the mortgage process . However, once customers have visited a mortgage broker or local bank for advice, the lender found that more than half of them seek out the best deals online .

Life Insurance
Let's use the rate sheet data below to demonstrate how we determine the rate that we quote to our borrowers. We will also show you using the corresponding HSH Survey data how other Brokers and Banks are making enormous undisclosed profits in the form of Yield Spread Premium.

Virginia Virginia Mortgage Broker License No. MB}3775 Washington Washington Licensed Mortgage Broker No.} 34138 In accordance with RESPA and the initial disclosure statement required under the TILA, you may receive from the Lenders a good faith estimate of settlement costs if your loan request is forwarded to one or more participating Lenders. in agreement has been made between you and the Lender. Consumertrack} in agreements and does not guarantee any rate of interest quoted by a participating Lender. in fee, in fee may be refunded, if any, will be set by the Lender.

Insurance Life Premium This data was collected from a real Wholesale Lender's (Ampro Mortgage ) Rate sheet dated 03/10/2006. You can confirm the HSH data is real as well by visiting HSH.com.

Colorado No Licensed required to market to consumers. Consumertrack is not a lender or a broker. The information provided by you to Consumertrack is not an application for a mortgage loan, qualify you with any lender or broker. If you are contacted by a lender or broker that advertises with Consumertrack and you submit a loan application to such lender or broker, your information remains between you and that lender or broker.

Health Insurance Policy 30 Year Fixed
Rate 15 Day 30 Day 45 Day
5.750% 1.350 1.475 1.600
5.875% 0.611 0.736 0.861
6.000% 0.039 0.164 1.826
6.125% (0.392) (0.267) (0.142)
6.250% (0.773) (0.648) (0.523)
6.375% (1.180) (1.055) (0.930)
6.500% (1.623) (1.498) (1.373)
6.625% (2.029) (1.904) (1.773)
6..750% (2.280) (2.155) (2.030)

Disclosures & Licenses Consumertrack Inc dba NationalHomeSavings.com and .com is not a lender or a broker. The information provided by you to Consumertrack is not an application for a mortgage loan, qualify you with any lender or broker. If you are contacted by a lender or broker that advertises with Consumertrack and you submit a loan application to such lender or broker, your information remains between you and that lender or broker.

Health Insurance HSH ASSOCIATES The Nation's Largest Publisher of Mortgage
The Nation's Mortgage Market: Average Rates for Residential Mortgages Week ending March 10, 2006
Owner-occupied 1-4 Family and Condos: Previously Occupied Homes Source: HSH Associates

You ’l also need to decide whether you want to get advice on choosing a mortgage. Mortgage brokers can scour the market on your behalf and recommend you the best deal for your situation. Using a mortgage broker can help ensure that you get a mortgage that is suitable for your own needs, and can often save you money. Sometimes brokers have access to special deals that are not available direct from a mortgage lender.

Insurance Life Premium Return SURVEY CONVENTIONAL MORTGAGES
15 Yr 30 Yr
National Ave. 6.15% 6.51%

Whole Life Insurance Policy
In our example, we will quote our borrower a 30 year rate that carries a lock period of 30 days. If we are seeking to earn only a 1.0% origination fee and NO yield spread premium (back end fee), we will quote the rate of 6.000%. According to the rate sheet, 6.000% actually costs .164% Discount payable to the Lender not Integrity First Mortgage. On this rate sheet, 6.000% is as close to "par pricing" as we can get. As you can see the next higher rate, 6.125% creates .267% of Yield Spread Premium and that's not good. (YSP's are shown in (.267) parenthesis). So with this example let's look at the costs for a loan at
6.00% with us.

Auto Cheap Insurance Rate: 6.000%, $200,000 Mortgage Loan x 1.0% Broker Origination Fee + 0.164 Discount = $200,000 x 1.164% = $2,328.00

Insurance Life Premium Whole Now let's show how everyone else does it! First realize that banks and brokers don't usually quote you
the rate you'll close with.they "bait and switch" with low-ball rates and artificially lowered closing costs
to get you to apply with them. Then on closing day, the rates and costs are higher than you expected, but
they claim their Good Faith Estimate was in deed just that.an estimate. You've got the moving van idling
in parking lot, so you sign. They count on the fact you've been painted into a corner and have but one
option.sign.

Cheap Home Insurance Policy How do I know this to be true? One reason is 15 years of asking folks, "How did your last loan go.any surprises at closing?" About 85% of those folks answer "Yes" is that one. Second, every closing exit poll conducted by Fannie Mae and Freddie Mac show the same results. But the most compelling reason is up above on HSH Survey data. It shows for the week ending Mar 10, 2006, the National Average interest rate on CLOSED Loans was 6.51%! (NOTE: HSH has an agreement with their 2000+ survey participants to give them closed loan rates, not "lobby rates" or advertised teaser rates.) I guarantee you that all those folks didn't sign a Good Faith Estimate at application showing them 6.5% because that's not the rate that's been all over the news, radio ads, and the internet over the prior 4-6 weeks when these folks were applying. The loan officer for the bank or broker could very easily advertise in the lobby 6% and have them sign at
6.5%...everyone would balk at that. So they show them 6.00%, get them to sign, and then sometime during processing or just at the closing, the borrower is informed his rate had to be adjusted upward. They will get very creative on explaining all the reasons why that had to happen, but suffice it to say, the real reason is they needed the extra revenue that the Yield Spread Premium creates at 6.5%. So with this rate sheet data, let's look at what they made.

Home Insurance Rate: 6.500%, $200,000 Mortgage Loan x 1.0% Broker Origination Fee +1.498 YSP = $200,000 x
2.498% = $4,996.00

Care Insurance Long Premium The banks and brokers can't forgo the Yield Spread Premium overcharging because at the very least it DOUBLES their income for each loan!

Home Owner Insurance Policy Armed with this "insider information" you'll be able to beat Mortgage Brokers and Banks at their own game!

Auto Insurance Company Rob K. Blake, author of the book, Mortgage Secrets Exposed! and host of the radio show, The Mortgage Insiders has been teaching
mortgage consumers for 15 years on how to avoid all the rip-offs artists laying in wait. Get more tips, tricks, and tactics aimed at
turning the tables in your favor at his website http://www.themortgageinsider.net/Home4.

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