Are you thinking about refinancing your home loan but aren't sure how to get the best mortgage rate? Choosing a lender to refinance can be a confusing process and if you pick the wrong person to arrange your loan you could pay thousands of dollars too much every year. The reason this happens is that your mortgage company or broker adds commission based markup to your mortgage rate. Homeowners who learn to recognize this markup can save themselves thousands of dollars every year. Here are several tips you can use to get the best mortgage rate when refinancing your mortgage. Why Are Mortgage Rates Marked Up? The mortgage company or broker arranging your loan charges you an origination fee for their part in setting up your mortgage. On top of this fee the lender pays them a commission for locking and closing loans with above market mortgage rates. This fee paid by the lender is called Yield Spread Premium. Learn how to avoid it and you can save thousands of dollars every year you have a mortgage loan. Yield Spread Premium And Your Mortgage Here's one scenario to illustrate Yield Spread Premium at work. Suppose you're refinancing your home for $250,000. Your mortgage broker quotes you a rate of 6.75 percent and charges you a one percent fee. In this example the fee your broker charges is $2,500 which is a reasonable amount to pay. The problem with this loan is what your broker isn't telling you. The mortgage rate your lender approved you is 6.0 percent and the broker has marked it up to 6.75 percent to get a 3 percent commission from the lender. This kickback from the lender is $7,500 on top of the $2,500 you're already paying. How Yield Spread Premium Affects Your Mortgage Payment You might wonder if arguing over .75% of your mortgage rate is worth the trouble. In the example above you qualified for a six percent mortgage rate; however the broker marked it up to 6.75%. On a conventional 30 year mortgage your monthly payment at 6.0% would be $1,498. If you agree to the higher mortgage rate that includes commission based markup your payment would go up to $1,621 per month. This is $1,476 per year that you'll pay extra; almost an entire mortgage payment extra because your broker took advantage of you. Refinancing Your Home Without Yield Spread Premium Learn to recognize Yield Spread Premium and you can take advantage of wholesale mortgage rates and save thousands of dollars every year. You can refinance and pay the broker a one percent origination fee without Yield Spread Premium if you know how to go about it. You can lean more about wholesale rates and recognizing and avoiding lender junk fees. Ready to refinance your home loan? Don't be ripped off by a dirty broker or lender - check out free, independent video tutorials on getting the best (http://www.refiadvisor.com) refinancing mortgage rate here.