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If youre considering refinancing your home mortgage with your bank there are several things you need to know to avoid overpaying. Bank mortgage loans may be a convenient way to refinance; however, theres a lot your bank isnt telling you about your mortgage interest rate. Here are several tips to help you avoid the costly mistake of refinancing your mortgage with a bank.

The Real Estate Settlement Procedures Act
RESPA for short, is legislation that protects homeowners in the United States by requiring mortgage companies and brokers to disclose their markup of your mortgage interest rate. The banking lobby spent millions of dollars to have this law changed so that your bank is exempt from the disclosure requirements when refinancing your mortgage. Banks are now exempt from disclosure laws and do not have to disclose anything about the profit margins on your loan.

Beware Service Release Premium
Banks are different from traditional mortgage lenders in several ways. Bank originated mortgage loans are not funded by a wholesale lenders so there is no retail markup of your mortgage interest rate. This doesnt mean your mortgage interest rate will not be marked by the bank; in fact, banks make the majority of their profit by selling mortgage loans with above market interest rates to investors on the secondary market.

The bank knows their profits come from mortgages with above market interest rates; the markup they add to the market interest rate is called Service Release Premium. Because of the loophole in the Real Estate Settlement Procedures Act your bank is not required to tell you how much theyve marked up your mortgage rate for this purpose. Your banker will show you the banks rate sheets and swear theyre not marked up; however, bank rate sheets include Service Release Premium.

You can learn more about refinancing your mortgage without paying too much with a free mortgage toolkit.

To get your FREE Mortgage Refinancing Video Toolkit, visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. To get your hands on this "Mortgage Refinancing Toolkit," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com.

Get your free mortgage refinancing tutorial today at: http://www.refiadvisor.com

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