Refinance Scams – A Few Things To Watch Out For When Refinancing Your Mortgage
Refinance Scams – A Few Things To Watch Out For When Refinancing Your Mortgage
Refinancing your mortgage is a big decision, and one that shouldn’t be made blindly. Here are a few things to watch out for when refinancing your mortgage.
Beware of a broker that is reluctant or refuses to disclose their YSP, or “yield spread premium”. That term refers to the amount of money the lender is giving to the broker in exchange for charging you a higher interest rate or enacting a longer or more severe pre-payment penalty. Statistically, unsolicited refinance offers have a much higher likelihood of coming from “predatory” lenders.
Be careful–all Good Faith Estimates are just that; estimates. They are all subject to change.
RESPA (Real Estate Settlement Procedures Act, a federal consuming protecting statue first enacted in 1974) prohibits any settlement service provider from giving or receiving anything of value for the referral of business in connection with a mortgage or charging fees or markups when no additional services has been provided. Mention “RESPA” to your lender, ask for a list of fees (they cannot charge you $25 for a credit report that cost them $8.50, for example), and be candid about shopping elsewhere if you feel slighted. At the same time, blindly shopping around may keep the broker from going the extra mile for you if something goes wrong and he/she feels that you haven’t placed faith in them.
Trust your gut. If something about your refinance transaction consistently feels wrong, there’s a good chance it is. Many lenders will gloss over the fact that you have a “Right of Recession” where you have from the day the loan closes until midnight three days later to cancel the deal, and you cannot be fined for that termination (except for losing any out of pocket expenses, such as an appraisal). That being said, almost everyone feels some sort of “buyer’s remorse” soon after closing a major financial transaction, even if that transaction is in your best interest.
Refinance Scams – A Few Things To Watch Out For When Refinancing Your Mortgage / CL Haehl
Low Rate Mortgage Refinance Companies – Recommended Leading Lenders Online – We maintain a list of reputable lenders online and update the list regularly.
Refinancing Your Home Loan – Apply With A Leading Lender Online
Refinancing Your Home Loan – Apply With A Leading Lender Online
If you are looking to refinance your home mortgage loan, make sure you apply with one of the internet’s leading lenders. You want to be absolutely sure that your application is secure online. All reliable, major loan companies online use encrypted applications for the best security online.
Avoid Applying With Smaller Companies – Applying for a mortgage online with a company that is small or not very established could be risky, if their application process is not secure, but it can also be a waste of time. Smaller mortgage companies online do not usually work with a large network of lenders and loan programs. So, for filling out your application and having your credit pulled, you might only be offered one or two different mortgage options.
Leading Lenders Have Thousands of Loan Programs Available – If you apply with a leading lender online, they usually have hundreds of lenders and thousands of programs they work with and with one application and one time of pulling your credit report, you can have loan offers that are competitive and realistic.
No Commitment – Another benefit to applying for a mortgage online is that there is no commitment. You can apply with no obligation of accepting any loan offers that you might receive. When you work through a broker that you know and have met with. You usually feel quite a bit of pressure to continue working with him/her once that person has started to put time and energy into helping you find a loan.
Make sure you complete your application as accurately as possible and describe your credit as accurately as possible in order to get the most realistic mortgage quote. If you fudge those numbers initially, you will just be disappointed later when the mortgage loan you thought you could qualify for will not be available to you.
Refinancing Your Home Loan – Apply With A Leading Lender Online / CL Haehl
Apply With a Leading Mortgage Lender Online- We have researched some of the most reputable mortgage lenders online and maintain a list of them. That list is updated regularly.
Refinance After Bankruptcy – How Does Your Bankruptcy Affect Home Mortgage Refinancing?
Refinance After Bankruptcy – How Does Your Bankruptcy Affect Home Mortgage Refinancing?
There are a few basic concepts one should know when looking into refinancing a mortgage after a bankruptcy. Most importantly, you need to know the two different types of personal bankruptcy that you can declare.
Chapter 7 Bankruptcy, often called “straight bankruptcy”, is an attempt for someone financially overextended to liquidate most of their assets to satisfy creditors, keeping only a few personal assets needed for the basic necessities of life such as an economical car, personal clothing, etc.
In Chapter 13 Bankruptcy, your assets are not liquidated. Instead, you come to an agreement with an appointed trustee where late charges and other penalties are eliminated and you start a payment plan to repay much of the debt owed. This process can take over a year or two, but will allow you to retain belongings (and property). Also, it is looked at more favorably by lenders because you are attempting to repay your debts, not just write them off. Lenders will look at both the date the bankruptcy was filed and when it was discharged.
A Chapter 13 Bankruptcy “buyout” is a refinance loan, taking out a new loan to cover the existing mortgage and some or all of the other debts. This is basically considered a “cash-out” refinance. Most Chapter 13 Bankruptcy refinance loans are limited to roughly 85% of the value of your home.
When refinancing out of a Chapter 13 Bankruptcy, or soon after a Chapter 7 or Chapter 13 Bankruptcy, you will almost certainly be working with a sub-prime or “non-prime” lender. These lenders specialize in helping borrowers with blemished credit histories. Often, borrowers refinancing near the time of a bankruptcy will seek the assistance of a mortgage broker, many of whom have experience with this type of loan. If possible, it is best to wait at least two years after the discharge of your bankrupty to refinance your mortgage. This will help you to receive a better interest rate. Start now to pay your bills on time and in full. This will help to repair your credit and give you even better chances of a lower rate.
Refinance After Bankruptcy – How Does Your Bankruptcy Affect Home Mortgage Refinancing? / CL Haehl
Mortgage Refinance Companies Who Service People With a Past Bankruptcy – We maintain an updated and current list of mortgage companies online who service borrowers with credit problems.