Best Mortgage Deals

by David
(Huntsville, AL USA)

Ask Kate: Best Mortgage Deals - How do you know if $7600 yield spread premium is too much to pay? Hi Kate, I'm about to close a refinance on my home. I'm using a mortgage broker.


In my good faith estimate, they are getting a 3 percent yield spread premium YSP of $7,600 and additionally charging 7/8 origination fee, underwriting fee, and all the normal stuff such as title and CMI.

My question is, if they are getting 3 percent YSP of $7600 should I be paying origination fee and other fees?

Kate Answers: Finding Best Mortgage Deals

David, Off the cuff, yes, $7600 is a whole lot of yield spread premium to be paying in addition to other closing costs.

But I'll preface that with saying to give an adequate analysis, your locked interest rate, loan amount, mortgage program and credit history must also be taken into consideration among other criteria.

So what can you do to assure yourself of a good deal? Recognizing the best mortgage deals begins with understanding how to compare closing costs before applying for a loan. Here's an example.

Instead of asking a lender for their lowest rate, it is important to compare mortgage rates and closing costs. Just think! What if you are quoted 4 percent today, only to find out, on the day of closing, your fees and charges add up to $20,000. I don't have to tell you how upset you'd be!

Help With Finding Your Best Mortgage Deals

Let's take the first step to becoming a savvy mortgage shopper with an understanding of good faith estimates! It may sound complicated but it's not.

Do it now. Go to this page, my guide to comparing mortgage rates and closing costs. Then return here when you are ready to move on.

Okay, good! You're back! Now that you understand the inner workings of good faith estimates, let's take a look at different types of fixed rate mortgages and learn how to Create A Combination Loan.

With fixed rates at historic lows and new loan programs from the government, the time to refinance is today! Don't procrastinate and allow the best mortgage deals to slip through your fingers.

Should you lock in a mortgage rate? Wow! What a question! Go here for a complete guide on mortgage rate lock.

If you still have questions about finding your best mortgage deal, write me at Ask Kate where every question is a good question.

Best Wishes,


PS David, Please help me spread the word by sharing my website with your friends. I depend on word of mouth!



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You can also ask Kate about your mortgage at Refinancing Advice The Nuts and Bolts.

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