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Mortgage Refinancing Article
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Mortgage Lenders: The Good, the Bad, and the Ugly
from: Deb St. George - HomelessInKingCounty.comIt’s quite true that today’s mortgage lenders come in all varieties. The mortgage fallout of the foreclosure scandals have some people doing a double take on their lenders, both when they are buying and since they have bought. Countrywide remains as one of the ugliest mortgage lenders of the housing bust, so much so that the FBI is now investigating their lending practices for evidence of fraud. There are still good lenders out there, but it pays to scrutinize any loan offer you are signing so that you don’t get caught in perilous lending practices that can put your home on the auction block.
How to Protect Yourself
If you have a loan that is currently under any mortgage lenders under investigation, it doesn’t mean you can’t refinance with someone else. You also want to steer clear of mortgage companies that may be going bankrupt as this can block the closing of the house sale at the last minute. You want to work with a reputable lender who isn’t in financial straits, to make sure you are not faced with a lender pulling out right before the papers are signed.
Get several offers from a variety of mortgage lenders, so that you know exactly what to expect. If your realtor or builder tries to get you to sign with one lender only, then this may be a tactic to keep you uniformed. The more offers you review, the more knowledgeable about what is a good offer for your particular financial situation.
Do your own homework. Don’t expect realtors or mortgage lenders to have your best interest at heart. You need to understand the terms of the loan as clearly as possible. If you don’t, you can always attend local homeownership courses at your local community college or through the Department of Housing and Urban Development (HUD). Never sign anything you don’t understand, especially if you are being pressured to do so within a short timeframe.
Never lie on your loan documents and avoid lenders that encourage you to fudge the numbers. This is an indication that you can’t afford a particular home and fudging the numbers is not likely to help you in the long run. It will, however, help the mortgage broker who makes a commission on preparing the loan documents. So, stick to the guidelines and try to stay within budget.
Avoid lenders that offer to fill in the blanks for you, just allowing you to sign on the bottom line. This can also be a practice of fraudulent “home ownership counseling” programs that make a commission on house sales in a particular area. Again, you should be the most informed consumer on how you will manage the debt of a home mortgage, not your lenders, your real estate agent, or even a counseling program.
Mortgage Refinancing News
Mortgage refinancing applications jump; rates fall: MBA
NEW YORK (Reuters) - Applications for U.S. home mortgages surged last week, driven by increased demand for refinancing as interest rates hit fresh lows, an industry group said on Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, jumped 9.2 percent in the week ended May 11. The ...
Read more...Mortgage brokers warn about new refinancing rules
Banking regulator wants homeowners’ employment status and current income be rechecked before loan renewals are approved
Read more...BMO Financial Tip of the Week: Review All Your Mortgage Refinancing Options
TORONTO, ONTARIO-- - As part of BMO Financial Group's ongoing commitment to financial literacy and 'Making Money Make Sense' for Canadians, BMO is releasing a financial tip every week in 2012.BMO's Financial ...
Read more...Refinancing Jumps Under HARP 2.0
Applications for mortgage refinancing have seen a sharp increase since new, relaxed guidelines for the Home Affordable Refinance Program (HARP) were unveiled last fall, the White House announced
Read more...Mortgage applications rise on refinancing
Continuing declines in fixed interest rates prompted a 9.2 percent increase in mortgage applications last week, the Mortgage Bankers Association reported Wednesday. Most of the increase came, however, from refinancing. The percentage of loans for refinancing increased to 74.9 percent from 72.1 percent the previous week. The percentage of mortgages for buying a house fell 2.4 percent from the ...
Read more...Obama to tout success of mortgage refinancing
SEATTLE — President Obama will announce new figures Friday showing a dramatic spike in the number of Americans taking advantage of federal programs designed to help struggling homeowners and stabilize the lagging housing industry, administration officials said Thursday. Read full article >>
Read more...Borrowers Face Big Delays In Refinancing Mortgages
In March, Mark Morrison says he was offered a 4.63% rate by his mortgage company, Ally Financial Inc., when he asked about refinancing. That would have resulted in monthly savings of just $87, before figuring ...
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