Mortgage Refinancing
Terminology Explained
November 2, 2012
Other Ways To Avoid Mortgage Fraud
Be aware that if you are struggling to make your payments or are on the brink of foreclosure, there are many possible fraudsters who already know and may attempt to deceive you. Anyone who says they can save your home if you pay them up front is trying to scam you. There are several schemes currently emerging. One is the backwards application scheme, which inflates or falsifies your income and assets in order to meet minimum application requirements. Another is the builder bailout scheme, which offers excessive incentives to home buyers that are not disclosed on mortgage loan documents.
June 12, 2013
Mechanisms Of Identifying And Avoiding Refinance Home Mortgage Pitfalls
More people run to refinance their home mortgage because they benefit from reduced rates of payment. This helps them in creating additional savings that is directed to other areas of development. However, you need to understand that pitfalls are very many and could result to massive losses and foreclosure. Here is a crucial revelation of these tips and how you can avoid them.
Some companies offering these services usually charge people for prepayment. Their focus is to drain any single cent out of you and therefore view prepayment negatively. You need to ask categorically and even have the company provide you with copies of all agreements and read them carefully before signing. You could even seek the assistance of a legal professional.
Remember that arbitration when it takes place will result to lose of your contract rights. You should ensure that the working documents or any dispute is resolved within the main agreements. This will save you a lot of costs that are usually not quoted at the beginning of the arbitration process.
Remember that as many companies try to get more clients to their companies, they advertise and offer to give you lower interest rates. However, the bad companies are not easy to identify and peg the rates depending on qualification of different clients. You need to ask about the interest rates and take your time in checking the applied formula and whether the total interest matches correctly. Let all the details be captured in the agreement.
Insist on reviewing the good faith statement before signing it. Only sign if it does not contain unnecessary or additional costs. For example, do not agree on anything beyond 1.5% of the origination fee. In addition, do not sign the statement if it contains expenses such as application, courier fees or lock charges. If the company does not agree to remove the same, look for a different one.
Be certain on the reason that is driving you to refinancing your home mortgage. This will ensure you stick to the main objective and consequently achieve it easily. You could however seek assistance of a refinance consultant to ensure that your objective will best be met though the process.
July 12, 2013
Tips On How To Refinance Your Home Mortgage
Each and every person needs to have an in-depth if not general knowledge on how to refinance a home mortgage. It is a general topic that has a huge role to play in current society. Most people often think of the process as difficult and technical but the truth is that there are a handful of things you need to know before you make a decision to refinance your mortgage.
One of the most important steps in the process is to find the right mortgage refinancing officer. This means that the terms as well as interest rates have to be favorable especially to your financial situation. Therefore, before you even embark on the task of finding the best deal, determine all the reasons for the need to refinance.
Once you have a clear idea of why you want to refinance, you have to carry out a cost benefit analysis. In other words, weigh the costs against the benefits of taking up a refinancing option. Ideally, for the option to be viable, the benefits should outweigh the costs. This is the general guide to finding out whether you are making the right decision towards the achievement of your purpose.
The next step is to shop for the best terms and rates from an accredited institution. So as to get an option that is most suitable for you, it will be worth your while to get rates from different institutions. With a variety of options, there are increased chances that you will find a contract that is most suitable for you. In so doing, you have to be very careful to understand all the terms and repayment criteria as well as rates. Read between the lines so that you understand all the details of the contract. You do not want to miss out on any point that may eventually cost you heavily.
In case you have a low credit rating, there are a number of institutions that specialize in offering refinance with bad credit services to clients with a poor credit history. On the other hand, there are a number of available options such as extending the repayment periods so as to reduce the monthly payments.
Thanks to enhanced communication and the increased use of the internet, getting a lending institution is much less of a hassle. There are services where all you need to do is submit your information and they distribute the data to multiple lending institutions which means that you do not necessarily have to look for a loan from one lender to another.
Another thing you have to do is ensure that you have an understanding of the terminology used in such contracts and agreements. You have to at least familiarize yourself with some of the most common words so as to avoid any misunderstandings or misinterpretations.
The internet is a reliable source for more information on how and when to refinance home mortgage. In fact, there are a variety of useful articles and blog posts where information is readily available to the public.