You may need to know about deed of trust foreclosure, power of sale or judicial foreclosure. Bank originated mortgage loans have the same markup as retail mortgage loans with one distinction. To get your free mortgage guidebook visit RefiAdvisor.com using the link below. To get your free mortgage guidebook visit RefiAdvisor.com using the link below. Because traditional mortgage companies and brokers have access to wholesale mortgage interest rates and are more likely to negotiate over markup and fees, you should never take out a mortgage loan from your Bank.

Aside from the fact that Banks don’t have to play by the rules your bank has a dirty little mortgage secret. Banks routinely overcharge their customers by marking up mortgage interest rates. Here are several reasons why you should never take out a mortgage loan from your bank.

Your Bank may seem like a convenient way of refinancing your mortgage loan; however, Banks have secret when it comes to disclosing information about their fees and markup. Simply compare bank rates to those offered by a wholesale mortgage broker and you will quickly understand why bank originated mortgage loans are a bad idea. Bank mortgage loans are often called “correspondent loans" because after the banker completes your mortgage that bank will immediately turn around and sell it on the secondary market.

If you want to try your hand at this business, visit your local bank and have someone explain to you how buying a foreclosed property works. Every bank does this and because of the loophole in RESPA legislation and no bank will ever disclose how much they have inflated your mortgage interest rate. In addition to having fewer choices, your bank is much less likely to negotiate over interest rates and fees. Banks inflate their mortgage rates with Service Release Premium to boost their profits at your expense.

Millions of dollars changed hands and when RESPA became law, your bank was exempt. Another problem with banks is that your banker will be much less likely to negotiate for terms and interest rates because of the loophole. Banks know that loans with above market interest rates bring them a premium profit at the homeowner’s expense. Your banker wants you to pay the highest mortgage rate possible so the bank makes the most money selling your loan on the secondary market. The secondary market is where investors buy and sell mortgage debt for a profit.

The mortgage you take out from the bank is funded entirely by the bank and pooled together with their other loans. Every bank does this and because of the loophole in RESPA legislation and no bank will ever disclose how much they have inflated your mortgage interest rate. Bank loans don’t have retail markup of this type; however, they mark up mortgage rates to above-market values to boost their profits.