Your Positions Clear -- Stay Firm
You need to be firm in what you will
pay or not pay. First, study the process of refinancing
so you can understand the steps involved and who benefits
from what. Know the current rates, and read economic
news—especially government announcements—that will help
you decide what to say to the lender and broker. Put
caps on how much you will pay for loan origination fees,
processing costs, etc.; also make sure you get a locked
in rate with the stipulation that if the rates change
you will only be affected if they go down and not up.
When it comes to the YSP, that should
be one cost that is non-negotiable on your end. Remember
that the lender pays a “commission” for this (which
amounts to a kickback), and this commission is not your
responsibility. Tell them up front you will not pay
any YSP, also more simply known as a markup. Once you
have laid down the law, make sure the company doesn’t
change your interest rate—ask to see the rate from their
wholesaler. If they refuse, you’re in the wrong place.
This mortgage company will be nothing but trouble.
Compare Wholesale Rates
When you do get your hands on the wholesale
rate, compare it to the mortgage company’s own rate.
If there is a difference, they are still trying to charge
you a YSP. Time to walk. In any case, always check this
aspect of your loan with an expert like a lawyer—it
will be worth a few bucks to save potentially thousands.