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Homeowners in Washington State have been granted class action status in a lawsuit against a major national mortgage lender over Yield Spread Premium. Yield Spread Premium is used by every mortgage lender in the country; if you are homeowner in the United States you need to know about this class action lawsuit.

What is Yield Spread Premium? These Washington homeowners took out mortgage loans from one specific lender and received mortgage interest rates that were higher than were approved for. The lawsuit alleges this happened because the loan representatives marked their interest rates up without telling them to receive a commission. Yield Spread Premium is the difference between the mortgage rate you were approved and the interest rate you close after any markup.

Why do loan representatives and mortgage brokers mark up your mortgage interest rate? They do this because for every quarter percent you agree to overpay over the interest rate you were approved they receive a bonus of one percent of your loan amount. The class action lawsuit alleges the national mortgage lender encouraged mortgage brokers to charge Yield Spread Premium without disclosing the markup to the borrowers. Homeowners in Washington State are suing because they are stuck paying a higher mortgage interest rate because their loans were misrepresented to make a commission.

The bad news is that this unnecessary markup of a homeowner’s mortgage interest rate happens in every State and is perfectly legal. Fortunately, homeowners who learn how to recognize this unnecessary markup can avoid paying it when refinancing. You can learn more about avoiding paying Yield Spread Premium 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

Source: www.articlebiz.com