Refinancing your mortgage has the potential to save you a lot of
money ? unless you get taken by a scam. Refinancing scams prey on your
desire to refi at a low rate. Once they get you hooked by having you
put money down or using delay tactics, you have little time to back
out. To protect yourself from losing money on your next refinance,
watch out for these signs of fraud.
1. Failure To Disclose Rates, Terms, And Closing Costs
Information
is your greatest tool when making financial decisions. With online
lenders you can rapidly compare rates, fees, and terms. Many lenders
also offer loan estimates, disclosing pertinent information before you
begin an application.
Anytime a lender delays or refuses to
provide information, you should be cautious. By law, financial company
have to tell you the rate, fees, and closing fees of any loan product.
You should also know how much time you have to close the deal before
rates are subject to reevaluation.
The most common scam involves
not telling you when locked in rates run out. Then at closing, the
lender will quote you a new rate a point or two higher.
2. Requests To Sign False Or Blank Loan Forms
Whenever
a lender asks you to falsify information or sign blank forms, run away.
If you knowingly give false information, you risk legal and financial
problems. While you can still go to the authorities, you will have
little recourse.
Blank forms provide frauds a license to draw up
any kind of loan terms they want. You may end up with higher rates,
balloon payments, or signing away your home?s title.
3. Pushes You To Agree To High Balances Or Payments
Be
aware when lenders try to push you to agree to a high balance or
payment. While all lenders will encourage you to borrow more in order
to increase their profits, the good lenders aren?t trying to force you
into foreclosure. Legitimate lenders want to collect interest. Scammers
want to take your home. View our recommended and trustworthy refinance
lenders at www.abcloanguide.com
The
best protection from scammers is information. Check out lenders? sites,
ask questions, and don?t be afraid of backing out of a deal. Good rates
and good terms are out there for those willing to do a little research.
Take a moment to research how to Refinance Your Property, or obtain an ABC Loan Guide list of reputable Home Loan Financing.
