Saturday, January 20, 2007

Mortgage Refinance Loans: What you need to know

Online mortgage brokers are and their ads are popping up everywhere now a days. That's because it's a multi-trillion dollar industry with millions of online lenders all vying for you business. What does that mean for you? More options. That' s a generally a good thing but you also need to know some basics about mortgage refinancing to protect yourself from scams and to avoid overpaying even then the apr is the best you have found. The three most important things you need to look out for are:

Arm Loans (Adjustable Rate Mortgages)
These mortgages fluctuate with the market and it's possible for your monthly mortgage payment to double what it was when you first refinanced after only a short period of time. These loans are accounting for a record number of forclosures as we speek so be aware.

Junk Fees
Go over the paperwork very closely as many lenders have starting adding more and more mystery fees to increase their profit.

Equity Stripping
Watch for lenders that seem to eager to help you and will pad your income on your appliaction to help you get the mortgage approved. They may be out to get the equity you have built up in your home after you can't make the payments. If a lender is willing to pad your income, walk out that minute.

No comments: