WATCH THE SCAMS!!!!!

When you make the decision to refinance your mortgage it may be the biggest decision you make. That’s why you should make it with your eyes open wide and take advantage of Mortgage loan tips, Mortgage secrets exposed, and Home buyer defense guide. Below is a list of things to watch out for:

· Watch out for good faith estimates. As we all know estimates can change.

· Ask the broker about the YSP (yield spread premium) if he seems unwilling to tell you. He is most likely not disclosing the amount of money the lender is giving in exchange for charging you a higher interest rate or utilizing a longer more severe prepayment penalty. If you have not requested a quote from a lender and they offer you refinancing, they may very well be predatory in nature.

· “RESPA (Real Estate Settlement Procedures Act, a federal consumer protection statute 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 have been provided. Mention “RESPA” to your lender, ask for a list of fees (they cannot charge you $25 for a credit report that costs them less),” If you do not feel comfortable you can check with other lenders while you are trying to clear the current deal. If you do not show certainty and initiative in your research; it might send the wrong message to the lender. You want to keep him working to get the best deal for us.

· Do your research before you sit at the table with the lender, get online quotes, the market is very competitive. Make sure you keep the same terms with all the lenders to find out who is actually working in your favor. If you feel that you have made a mistake even after you have signed the loan papers, you have three days to cancel any loan agreement. You should only lose your appraisal money. Don’t be afraid to ask questions, question the online mortgage companies, question mortgage brokers and other loan affiliates, after all you are making a huge decision and it’s one you will have to live with.


Happy Surfing,