If you are in the process of refinancing your Los Angeles home, the right loan can mean the difference between saving money and overpaying thousands of dollars every year. With the high cost of home prices in Los Angeles, homeowners need to be especially careful when refinancing their mortgages. Here are several tips to help you avoid paying too much when refinancing your home in Los Angeles.

If you live in Los Angeles, property taxes alone are a nightmare for many homeowners. What you might not know is that your mortgage company takes advantage of the high cost of homes in Los Angeles to boost their profits at your expense. Here’s how this perfectly legal mortgage scam works.

When you apply for a new loan to refinancing your Los Angeles mortgage, your loan is approved by a wholesale lender at a specific interest rate. You loan representative marks this rate up because the lender pays them a bonus for overcharging you. For every .25% you unknowingly agree to overpay, the wholesale lender pays your mortgage company 1% of your loan amount. This bonus is paid in addition to the origination fees you are already paying for the mortgage company’s services.

This markup of your mortgage interest rate is called Yield Spread Premium and will cost you thousands of dollars every year unnecessarily. Fortunately, you can avoid overpaying when refinancing your Los Angeles mortgage. Tell your mortgage representative that you understand Yield Spread Premium and simply will not pay it. You can learn more about avoiding costly mistakes with a free mortgage tutorial.

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

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

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