If you are considering a home mortgage refinance loan there are many great reasons for mortgage refinancing. If you are considering mortgage refinancing but are not sure how to get started, here are several tips to help you decide if a home mortgage refinance loan is right for you.
When is a Home Mortgage Refinance Loan a Good Idea?
There are a variety of reasons for refinancing your mortgage. Every financial situation is different and there are many reasons for refinancing in your situation. For instance, if your financial situation has improved since purchasing your home, you may qualify for a better interest rate with a new home mortgage refinance loan.
Interest rates along with the term length you choose determine how much your monthly payment will be. Even if you cannot qualify for a lower mortgage interest rate you can still lower your mortgage payment by extending the term length of your loan. Choosing a mortgage with a fifty year term length could significantly lower your payment allowing you to take back control of your monthly budget.
Advantages of Home Mortgage Refinance Loans
There are a number of advantages to home mortgage refinance loans; depending on your individual finances you may take advantage of the following benefits:
• Tax-deductible Debt Consolidation
• Lower Mortgage Payments
• Lower Mortgage Interest Rates
• Stop Paying Private Mortgage Insurance
• Switch to a Fixed Mortgage Interest Rate
• Switch to a More Advantageous Term Length
How to Avoid Overpaying for Your Home Mortgage Refinance Loan
When you begin shopping for a new home mortgage refinance loan, there are many choices available to you. Choosing the right type of mortgage interest rate and term length will help you avoid overpaying for your home mortgage refinance loan. You can learn more about mortgage refinancing, including costly mistakes to avoid by registering for a free mortgage tutorial.
Article Source: http://EzineArticles.com/?expert=Louie_Latour
Monday, 7 December 2009
Take Advantage Of The Mortgage Rate War!
The current market situation is very promising. More and more lenders are getting into the market and competing to get a good share of it. Because of this, a mortgage rate war has been unleashed and you can benefit from it by shopping for a loan instead of going for the first offer you receive.
Good mortgage rates are really hard to find. Most mortgage companies hide them from you. In contrast to general perception, home is not the prime purchase of one’s life; actually, mortgage is the biggest purchase people make in their life. Over its term, perhaps you will shell out more on the interest than you made payment towards the purchase of your house. If you can save a few fractions of a point on your interest rate, it can save you a fabulous amount on your mortgage.
The Art Of Negotiation
Getting a good mortgage rate depends mainly on your negotiating skills, apart from other different factors. What you have to do is to do your research prior to applying and then meet with your lender knowing where you stand. Comparing mortgage quotes and interest rates of various mortgage deals helps you decide your preference towards a particular deal.
Terms You Should Consider
When you apply for a mortgage loan, apart from quoted information on the cost of the loan in terms of the mortgage rates and points, you should also look at the term or length of time you will be paying for the mortgage. Then, consider which mortgage loan best suits your needs.
Most people can’t make the difference between one adjustable rate mortgage and the next. The mortgage loan rate on an adjustable-rate mortgage is simply an estimate, because the mortgage rate on an adjustable rate mortgage varies. While estimating the mortgage rates on an adjustable rate mortgage, lenders assume that the loan index will hang around at the current mortgage rates for the residual term of the loan.
Mortgage Loan Rates – Analyze Them All
As the index fluctuates, it is impossible to predict exactly what changes will occur in the economy. That is why you should ask your mortgage lender to provide you with the estimated rate as well as the maximum mortgage rate cap, which will tell you a maximum amount of mortgage rate interest you can pay on your mortgage during the period of the loan.
Another factor which is taken into consideration while finalizing your interest rate is your credit rating. A person with good credit rating carries a lower risk to the lender, and in turn gets a lower rate. Some lenders specialize in one type of borrower over another; a few prefer higher risk with higher returns, while some prefer lower risk borrowers.
So don’t contact the wrong type of lender or you may be turned down in case you are a high-risk borrower approaching a low risk lender. Some lenders are interested in entertaining either type of borrower, offering them different rates.
You should always look for appropriate lenders. If you think your credit score won’t let you qualify with a particular lender, search for bad credit loan lenders instead and save yourself the hassles of getting declined which will also lower your credit score even more.
Mary Wise, a professional consultant with twenty years in the financial field, helps people in the process of securing personal loans, mortgage, refinance or consolidation loans and preventing consumers from falling into the hands of fraudulent lenders. At Badcreditloanservices.com you will find more useful tips and interesting financial articles on this and many other related topics.
Article Source: http://EzineArticles.com/?expert=Mary_Wise
Good mortgage rates are really hard to find. Most mortgage companies hide them from you. In contrast to general perception, home is not the prime purchase of one’s life; actually, mortgage is the biggest purchase people make in their life. Over its term, perhaps you will shell out more on the interest than you made payment towards the purchase of your house. If you can save a few fractions of a point on your interest rate, it can save you a fabulous amount on your mortgage.
The Art Of Negotiation
Getting a good mortgage rate depends mainly on your negotiating skills, apart from other different factors. What you have to do is to do your research prior to applying and then meet with your lender knowing where you stand. Comparing mortgage quotes and interest rates of various mortgage deals helps you decide your preference towards a particular deal.
Terms You Should Consider
When you apply for a mortgage loan, apart from quoted information on the cost of the loan in terms of the mortgage rates and points, you should also look at the term or length of time you will be paying for the mortgage. Then, consider which mortgage loan best suits your needs.
Most people can’t make the difference between one adjustable rate mortgage and the next. The mortgage loan rate on an adjustable-rate mortgage is simply an estimate, because the mortgage rate on an adjustable rate mortgage varies. While estimating the mortgage rates on an adjustable rate mortgage, lenders assume that the loan index will hang around at the current mortgage rates for the residual term of the loan.
Mortgage Loan Rates – Analyze Them All
As the index fluctuates, it is impossible to predict exactly what changes will occur in the economy. That is why you should ask your mortgage lender to provide you with the estimated rate as well as the maximum mortgage rate cap, which will tell you a maximum amount of mortgage rate interest you can pay on your mortgage during the period of the loan.
Another factor which is taken into consideration while finalizing your interest rate is your credit rating. A person with good credit rating carries a lower risk to the lender, and in turn gets a lower rate. Some lenders specialize in one type of borrower over another; a few prefer higher risk with higher returns, while some prefer lower risk borrowers.
So don’t contact the wrong type of lender or you may be turned down in case you are a high-risk borrower approaching a low risk lender. Some lenders are interested in entertaining either type of borrower, offering them different rates.
You should always look for appropriate lenders. If you think your credit score won’t let you qualify with a particular lender, search for bad credit loan lenders instead and save yourself the hassles of getting declined which will also lower your credit score even more.
Mary Wise, a professional consultant with twenty years in the financial field, helps people in the process of securing personal loans, mortgage, refinance or consolidation loans and preventing consumers from falling into the hands of fraudulent lenders. At Badcreditloanservices.com you will find more useful tips and interesting financial articles on this and many other related topics.
Article Source: http://EzineArticles.com/?expert=Mary_Wise
Private Mortgage Investors - Who Are They?
To understand who private mortgage investors are, it is first necessary to understand what a private mortgage is. A private mortgage is a legal agreement, secured by real property, between a borrower and a private lender that obligates the borrower to pay money to the holder of the mortgage note. A private mortgage therefore produces a regular stream of income to the investor with all the advantages and protections that a mortgage lien can provide.
Typically, private mortgage investors can charge more interest and points (fees) on a mortgage than a bank could because the risk of lending to people who aren't eligible for normal mortgages is far greater. Quite often investors lend to people with less than perfect credit, but they may also lend to real estate investors irrespective of credit.
Traditionally, private mortgage investors were individuals who had sold their property and agreed to take back a promissory note and a mortgage from the buyer. The advantages to the seller were threefold. Firstly, by offering such terms, the homeowner was more likely to sell their property in a slow market and obtain the full asking price. Secondly, the seller would be a guaranteed a regular fixed income at a better rate than could be obtained from investing in a CD. Thirdly, if the buyer defaulted, then the owner would be entitled to foreclose on the property, just as if he or she were a bank. The benefit to the buyer of a privately funded mortgage loan is that they don't have to worry about an extensive check on their credit or financial situation.
More recently, real estate investors have branched out into other areas of real estate financing. Some private investors specialize in lending money to professional real estate investors for the purchase and rehab of residential and commercial property. Others specialize in making mortgage loans to small real estate developers for the purchase of raw land and the initial construction finance. There are even some private investors who will lend to homeowners facing foreclosure or provide second mortgage financing, similar to a Home Equity Line of Credit.
Such has been the growth in private mortgage lending that there are now companies offering private mortgage investment services in the USA. Typically, these companies will either advertise individual mortgages for "purchase" by an investor, or syndicate a hard money loan amongst a group of private investors on their mailing list, or offer shares in a private mortgage investment fund.
Lastly, but by no means least, there are private investors who specialize in buying privately held mortgages at a discount, i.e. less than the principal amount outstanding. These investors provide an important role in creating liquidity in what would otherwise be an illiquid market. The main disadvantage of being a private mortgage holder is that you must wait for the loan to be repaid before you can access your capital. If an investor can't wait that long, then they will need to find a way of selling the mortgage to a third party and this is where this last type of private investor comes into their own.
Article Source: http://EzineArticles.com/?expert=Peter_Haynes
Typically, private mortgage investors can charge more interest and points (fees) on a mortgage than a bank could because the risk of lending to people who aren't eligible for normal mortgages is far greater. Quite often investors lend to people with less than perfect credit, but they may also lend to real estate investors irrespective of credit.
Traditionally, private mortgage investors were individuals who had sold their property and agreed to take back a promissory note and a mortgage from the buyer. The advantages to the seller were threefold. Firstly, by offering such terms, the homeowner was more likely to sell their property in a slow market and obtain the full asking price. Secondly, the seller would be a guaranteed a regular fixed income at a better rate than could be obtained from investing in a CD. Thirdly, if the buyer defaulted, then the owner would be entitled to foreclose on the property, just as if he or she were a bank. The benefit to the buyer of a privately funded mortgage loan is that they don't have to worry about an extensive check on their credit or financial situation.
More recently, real estate investors have branched out into other areas of real estate financing. Some private investors specialize in lending money to professional real estate investors for the purchase and rehab of residential and commercial property. Others specialize in making mortgage loans to small real estate developers for the purchase of raw land and the initial construction finance. There are even some private investors who will lend to homeowners facing foreclosure or provide second mortgage financing, similar to a Home Equity Line of Credit.
Such has been the growth in private mortgage lending that there are now companies offering private mortgage investment services in the USA. Typically, these companies will either advertise individual mortgages for "purchase" by an investor, or syndicate a hard money loan amongst a group of private investors on their mailing list, or offer shares in a private mortgage investment fund.
Lastly, but by no means least, there are private investors who specialize in buying privately held mortgages at a discount, i.e. less than the principal amount outstanding. These investors provide an important role in creating liquidity in what would otherwise be an illiquid market. The main disadvantage of being a private mortgage holder is that you must wait for the loan to be repaid before you can access your capital. If an investor can't wait that long, then they will need to find a way of selling the mortgage to a third party and this is where this last type of private investor comes into their own.
Article Source: http://EzineArticles.com/?expert=Peter_Haynes
Mortgage Refinancing - Three Costly Mortgage Mistakes to Avoid
If you are refinancing your mortgage there are several costly mistakes that can cause you to overpay thousands of dollars for your new mortgage loan. Doing your homework and researching mortgage lenders will help you avoid the majority of mistakes homeowners make when mortgage refinancing. Here are several tips to help you avoid three common homeowner mistakes that will result in overpaying thousands of dollars for your new loan.
Mortgage Refinancing is an expensive process, even when done correctly. You will be required to pay fees and closing costs to secure the new mortgage refinancing loan. These costs typically run between 1-3%, not including any discount points you agree to pay in exchange for a lower interest rate or better terms. Many homeowners make the mistake of trying to time the market for a better mortgage refinancing interest rate, or assume by choosing the loan with the lowest interest rate they will save money. Here are tips to help you avoid making the same mortgage refinancing mistakes.
Mortgage Refinancing Mistakes: Trying to Time Interest Rates
Mortgage interest rates are extremely unpredictable. Any one telling you they can time interest rates to find you the best loan is not being completely honest with you. Many people try and time the market as a gimmick to sell their services; however, these people are just guessing based on what they see in the news. Instead of trying your luck at timing the market, you are better off using your time to research mortgage refinancing lenders and their loan offers.
The Internet makes doing your mortgage refinancing homework easy. You can quickly research dozens of mortgage lenders and compare mortgage refinancing offers line-by-line. When you comparison shop for a new mortgage it is important to compare all aspects of the mortgage loans you consider. Homeowners that focus only on mortgage refinancing interest rates make the next costly mortgage refinancing mistake we will discuss.
Mortgage Refinancing Mistakes: Assuming the Lowest Interest Rate is Best
Mortgage refinancing interest rates are important; however, interest rates are only one aspect of the new loan. Many homeowners think choosing the loan offer with an attractive interest rate will save them money. These homeowners often choose risky adjustable rate mortgages with unusually low introductory rates that go up significantly after a period of time, or will overlook mortgage refinancing lender fees and closing costs. Making either mistake will result in significantly overpaying for your home loan. In the case of that risky adjustable rate mortgage, you could even lose your home if you don’t fully understand what you’re getting into. To learn more about avoiding other costly mortgage refinancing mistakes, register for a free mortgage guidebook.
Article Source: http://EzineArticles.com/?expert=Louie_Latour
Mortgage Refinancing is an expensive process, even when done correctly. You will be required to pay fees and closing costs to secure the new mortgage refinancing loan. These costs typically run between 1-3%, not including any discount points you agree to pay in exchange for a lower interest rate or better terms. Many homeowners make the mistake of trying to time the market for a better mortgage refinancing interest rate, or assume by choosing the loan with the lowest interest rate they will save money. Here are tips to help you avoid making the same mortgage refinancing mistakes.
Mortgage Refinancing Mistakes: Trying to Time Interest Rates
Mortgage interest rates are extremely unpredictable. Any one telling you they can time interest rates to find you the best loan is not being completely honest with you. Many people try and time the market as a gimmick to sell their services; however, these people are just guessing based on what they see in the news. Instead of trying your luck at timing the market, you are better off using your time to research mortgage refinancing lenders and their loan offers.
The Internet makes doing your mortgage refinancing homework easy. You can quickly research dozens of mortgage lenders and compare mortgage refinancing offers line-by-line. When you comparison shop for a new mortgage it is important to compare all aspects of the mortgage loans you consider. Homeowners that focus only on mortgage refinancing interest rates make the next costly mortgage refinancing mistake we will discuss.
Mortgage Refinancing Mistakes: Assuming the Lowest Interest Rate is Best
Mortgage refinancing interest rates are important; however, interest rates are only one aspect of the new loan. Many homeowners think choosing the loan offer with an attractive interest rate will save them money. These homeowners often choose risky adjustable rate mortgages with unusually low introductory rates that go up significantly after a period of time, or will overlook mortgage refinancing lender fees and closing costs. Making either mistake will result in significantly overpaying for your home loan. In the case of that risky adjustable rate mortgage, you could even lose your home if you don’t fully understand what you’re getting into. To learn more about avoiding other costly mortgage refinancing mistakes, register for a free mortgage guidebook.
Article Source: http://EzineArticles.com/?expert=Louie_Latour
Mortgage Refinancing – What You Need to Know Before Refinancing With a Broker
If you are in the process of refinancing your home loan you might consider using a mortgage refinancing broker to help you find the best loan offer. Mortgage brokers are an excellent resource for locating competitive mortgage refinancing offers as long as you understand how retail mortgage loans work. Brokers often significantly mark up the interest rates on loan offers; if you are able to recognize this markup you can easily avoid paying it. Here are several tips to save you money when mortgage refinancing with a broker.
The Mortgage Refinancing Market
The retail mortgage market is made up of mortgage companies and brokers that refer borrowers to wholesale lenders for a commission. There are also banks and broker- banks that write their own mortgages; however, due to loopholes in mortgage refinancing disclosure laws that protect homeowners in the United States, you should never refinance your mortgage with a bank or broker-bank. For the purpose of this discussion we will focus on mortgage refinancing with mortgage brokers which act as third party vendors for wholesale mortgage lenders.
Mortgage Refinancing With a Broker
Mortgage brokers that do not close on home loans in their own names are excellent time-saving resources for mortgage refinancing. This is especially true for special needs borrowers, like homeowners with poor credit. The first question you should ask every broker you consider is “Do you close on the loan in your own name?” If the answer to this question is “Yes” or the mortgage refinancing broker refuses to answer, you know that you are dealing with a broker-bank and should scratch this person off your list. Never refinance your mortgage with a bank or a bank pretending to be a mortgage broker.
What to Tell Your Broker When Mortgage Refinancing
When you have found a broker that you are certain is not a bank masquerading as a mortgage broker, tell the broker you will pay mortgage refinancing origination fees and closing costs, but will not pay Yield Spread Premium (YSP) of any kind. YSP is the markup mortgage brokers tack onto the interest rate your wholesale mortgage refinancing lender qualified you for. Mortgage brokers do this to receive an additional bonus for overcharging you.
Article Source: http://EzineArticles.com/?expert=Louie_Latour
The Mortgage Refinancing Market
The retail mortgage market is made up of mortgage companies and brokers that refer borrowers to wholesale lenders for a commission. There are also banks and broker- banks that write their own mortgages; however, due to loopholes in mortgage refinancing disclosure laws that protect homeowners in the United States, you should never refinance your mortgage with a bank or broker-bank. For the purpose of this discussion we will focus on mortgage refinancing with mortgage brokers which act as third party vendors for wholesale mortgage lenders.
Mortgage Refinancing With a Broker
Mortgage brokers that do not close on home loans in their own names are excellent time-saving resources for mortgage refinancing. This is especially true for special needs borrowers, like homeowners with poor credit. The first question you should ask every broker you consider is “Do you close on the loan in your own name?” If the answer to this question is “Yes” or the mortgage refinancing broker refuses to answer, you know that you are dealing with a broker-bank and should scratch this person off your list. Never refinance your mortgage with a bank or a bank pretending to be a mortgage broker.
What to Tell Your Broker When Mortgage Refinancing
When you have found a broker that you are certain is not a bank masquerading as a mortgage broker, tell the broker you will pay mortgage refinancing origination fees and closing costs, but will not pay Yield Spread Premium (YSP) of any kind. YSP is the markup mortgage brokers tack onto the interest rate your wholesale mortgage refinancing lender qualified you for. Mortgage brokers do this to receive an additional bonus for overcharging you.
Article Source: http://EzineArticles.com/?expert=Louie_Latour
Find the Best Mortgage Deal in UK
The mortgage market has grown considerably and paved way for competitive mortgage deals. Borrowers can choose to surf the internet to access mortgage deals or opt for the old fashioned way and find mortgage lenders who offer interesting incentives and the best mortgage rates. For borrowers who opt for this old fashioned method, the mortgage process could turn out to be a long and tedious one. However online mortgage options are ideal for the borrower who wants to save a considerable amount of time and money.
Getting the best mortgage deal
Mortgages come with a wide range of interest rates and repayment options. Shopping around carefully for a mortgage deal could easily help a borrower secure the best mortgage deal. It is also advisable to seek mortgage quotes so one can compare offers of the various lenders and find one that best suits his/her needs. You can begin by visiting various sites that obtain general financial and personal information to respond back with a mortgage quote.
However, it is important to check the credentials of the mortgage lender. When dealing with a professional mortgage company/lender, the borrower is assured of legitimate mortgage quotes and personalized service. It is also important to ensure that the mortgage quote is realistic based on your requirements. An online mortgage resource is a great place to start. It gives you an opportunity to compare different mortgage lenders, conveniently apply online through a simple and secure online application form. Borrowers who want to opt for buy to let, credit challenged, people with no deposit who want to but a home or people who already own a home and want to switch lenders can choose from a wide range of options.
Types of mortgages
Most mortgages revert to a variable rate, either the lenders standard variable rate or a tracker rate which will be linked to the underlying Bank of England rate. If the borrower opts for a fixed rate mortgage, the interest rate remains constant for a fixed period which could be 2, 3, 4, 5 or even 10 years. In the case of a capped rate mortgage the interest rate cannot rise above the 'cap', a fixed upper limit. Borrowers could also choose from flexible mortgages which start with a lower rate of interest, varies with time depending on changes in market interest rate and also with relationship to index such as national average mortgage and Treasury bill rate and offset mortgages which offsets your mortgage by linking it to your savings or current account.
It is important to obtain all the cost information while opting for a mortgage. The borrower can carry out a free and impartial search online to ensure that he/she secures the best mortgage deal.
Article Source: http://EzineArticles.com/?expert=Reethi_Rai
Getting the best mortgage deal
Mortgages come with a wide range of interest rates and repayment options. Shopping around carefully for a mortgage deal could easily help a borrower secure the best mortgage deal. It is also advisable to seek mortgage quotes so one can compare offers of the various lenders and find one that best suits his/her needs. You can begin by visiting various sites that obtain general financial and personal information to respond back with a mortgage quote.
However, it is important to check the credentials of the mortgage lender. When dealing with a professional mortgage company/lender, the borrower is assured of legitimate mortgage quotes and personalized service. It is also important to ensure that the mortgage quote is realistic based on your requirements. An online mortgage resource is a great place to start. It gives you an opportunity to compare different mortgage lenders, conveniently apply online through a simple and secure online application form. Borrowers who want to opt for buy to let, credit challenged, people with no deposit who want to but a home or people who already own a home and want to switch lenders can choose from a wide range of options.
Types of mortgages
Most mortgages revert to a variable rate, either the lenders standard variable rate or a tracker rate which will be linked to the underlying Bank of England rate. If the borrower opts for a fixed rate mortgage, the interest rate remains constant for a fixed period which could be 2, 3, 4, 5 or even 10 years. In the case of a capped rate mortgage the interest rate cannot rise above the 'cap', a fixed upper limit. Borrowers could also choose from flexible mortgages which start with a lower rate of interest, varies with time depending on changes in market interest rate and also with relationship to index such as national average mortgage and Treasury bill rate and offset mortgages which offsets your mortgage by linking it to your savings or current account.
It is important to obtain all the cost information while opting for a mortgage. The borrower can carry out a free and impartial search online to ensure that he/she secures the best mortgage deal.
Article Source: http://EzineArticles.com/?expert=Reethi_Rai
Mortgage Refinance Information - The Mortgage Marketplace: Tips to Save You Money
Mortgage Refinance Information can save you a lot of money. Doing your homework and researching mortgage refinance information and loan offers before applying will help you avoid costly mistakes. The first step to finding the right loan is learning about the mortgage industry and the different types of lenders. Here is mortgage refinancing information regarding lenders and the marketplace to help you avoid choosing the wrong type of lender when refinancing.
The mortgage industry is made up of two markets. There is the primary mortgage market and the secondary market. The primary mortgage market is the retail market made up of banks, credit unions, brokers, broker-banks, and other mortgage companies. The secondary market consists of investment companies and government backed organizations such as Fannie Mae and Freddie Mac that buy and sell mortgage debt for profit. You will be seeking mortgage refinance information in the primary market; but first a warning about banks, credit unions, and broker-banks.
When comparison shopping mortgage refinance information, avoid banks, credit unions, and mortgage broker-banks. Never take out a mortgage from one of these institutions, under any circumstance. The reason for never trusting a bank or broker-bank with your mortgage loan pertains to loopholes in the Real Estate Settlement Procedures Act (RESPA) that protects homeowners from the abuses of predatory mortgage lenders by requiring the disclosure of mortgage refinance information. When the RESPA legislation was making its way through the House of Representatives and the Senate, banks lobbied intensely to be excluded from any law requiring disclosure of mortgage refinance information regarding fees and markup. Millions of dollars changed hands and when RESPA was signed into law, lo and behold banks were exempt from the new mortgage refinance information disclosure laws.
This loophole in RESPA mortgage refinance information disclosure laws is why you should never seek mortgage refinance information from your bank, credit unions, or broker-banks. You may be wondering what a broker-bank is; mortgage broker-banks function identically like mortgage brokers except they close on mortgage loans in their own company names, functioning just like a bank. This allows them to exploit the loophole in RESPA like your bank. If you take out a mortgage from your bank or broker-bank, you will never know what the lender’s markup is or what fees they are charging; you will overpay for this mortgage loan, guaranteed. For more mortgage refinance information including how to avoid costly mistakes, register for a free mortgage refinance information guidebook.
Article Source: http://EzineArticles.com/?expert=Louie_Latour
The mortgage industry is made up of two markets. There is the primary mortgage market and the secondary market. The primary mortgage market is the retail market made up of banks, credit unions, brokers, broker-banks, and other mortgage companies. The secondary market consists of investment companies and government backed organizations such as Fannie Mae and Freddie Mac that buy and sell mortgage debt for profit. You will be seeking mortgage refinance information in the primary market; but first a warning about banks, credit unions, and broker-banks.
When comparison shopping mortgage refinance information, avoid banks, credit unions, and mortgage broker-banks. Never take out a mortgage from one of these institutions, under any circumstance. The reason for never trusting a bank or broker-bank with your mortgage loan pertains to loopholes in the Real Estate Settlement Procedures Act (RESPA) that protects homeowners from the abuses of predatory mortgage lenders by requiring the disclosure of mortgage refinance information. When the RESPA legislation was making its way through the House of Representatives and the Senate, banks lobbied intensely to be excluded from any law requiring disclosure of mortgage refinance information regarding fees and markup. Millions of dollars changed hands and when RESPA was signed into law, lo and behold banks were exempt from the new mortgage refinance information disclosure laws.
This loophole in RESPA mortgage refinance information disclosure laws is why you should never seek mortgage refinance information from your bank, credit unions, or broker-banks. You may be wondering what a broker-bank is; mortgage broker-banks function identically like mortgage brokers except they close on mortgage loans in their own company names, functioning just like a bank. This allows them to exploit the loophole in RESPA like your bank. If you take out a mortgage from your bank or broker-bank, you will never know what the lender’s markup is or what fees they are charging; you will overpay for this mortgage loan, guaranteed. For more mortgage refinance information including how to avoid costly mistakes, register for a free mortgage refinance information guidebook.
Article Source: http://EzineArticles.com/?expert=Louie_Latour
Subscribe to:
Comments (Atom)