Refinance Rip-Offs: 6 Easy Ways to Avoid Them
Refinancing can be frustrating when, after
all is said and done, you find you've been ripped off! Here is an easy
guide to help you save your money and have peace of mind.
It's so easy today to lose money unnecessarily
when you refinance. Hidden fees and penalties, terms you did not completely
understand or a hard core loan officer who avoids issues you may have can
create headaches you don't need! Let us show you how to easily protect
yourself and come out way ahead.
=Knowledge Going In...
Go online and browse for major lender websites
like Bank of America, World Savings, Indymac Bank, etc. Every one should
have full descriptions of refinance programs currently available. Look
through the fixed rate and adjustable rate mortgages and get a good understanding
of how they work. These big lenders spend a lot of money on easy explanations
of their mortgage refinance programs. Take advantage of them.
=Making Contact
In talking with a lender, make sure the
loan officer doesn't avoid any of your questions. If they get off track
and evade issues, move on to the next lender! And ALWAYS get a good faith
estimate and full details of the loan program you are interested in before
making any decisions to proceed with them. There will always be questions
once you see these that may give you pause.
=Don't Let Them Pull Your Credit Report
Yet
If you give every home mortgage refinance
company a green light to pull your credit, this can affect your score negatively.
Wait until you find the company you trust with the program you want. They
need a good idea of how your credit is to quote you properly. You can call
the major credit reporting agencies and request a copy of your credit report
and then fax it to them, or, have them send you a Borrower Authorization
Form which gives them permission to pull your credit.
=Go Over The Fees
The fee schedule in a refinance can often
include bogus fees- fees made up to inflate the profit of the loan officer.
Only pay for necessary fees. Go over it carefully with them. And remember-
the origination fee is always negotiable!
=Careful of the Prepay Penalties
There is always the possibility of prepay
penalties, especially with adjustable loan refinance programs. The term
of the prepay can be reduced or eliminated by paying some points. But if
it's a great loan that suits your purposes, then save your money. Most
prepays are 2 to 3 years in length. Most people refinance every 4-5 years.
=The Final Approval
Once the lender has received your full
refinance package and appraisal, upon approval of your loan, ask to see
the fee schedule from the lender. Make sure again that there are NO junk
fees.
=A Final Note...
When looking at loan programs, there are
all kinds with different advantages and disadvantages. TAKE YOUR TIME!
Make sure you discuss with your loan officer ALL the possibilities. For
instance, an interest only option might be available, or a longer term
on the limited fixed rate program might be better for you. If you follow
these 6 simple steps we've outlined, you will come out way ahead and save
yourself time, aggravation and most of all...MONEY!
Author-Bio: Cornerstone Mortgage
Solutions has helped thousands of people and investors get the fairest
and best programs available. They are trusted by their peers. Let them
take good care of YOU- Click here for free quote- http://www.refinance4.com
loancms@cox.net or call 949-305-1793
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