Refinance Scams A Few Things To Watch Out For When Refinancing Your Mortgage

Refinance Scams - a​ Few Things to​ Watch Out For When Refinancing Your Mortgage
Refinancing your mortgage is​ a​ big decision,​ and one that shouldn't be made blindly .​
Here are a​ few things to​ watch out for when refinancing your mortgage.
Beware of​ a​ broker that is​ reluctant or​ refuses to​ disclose their YSP,​ or​ yield spread premium .​
That term refers to​ the​ amount of​ money the​ lender is​ giving to​ the​ broker in​ exchange for charging you​ a​ higher interest rate or​ enacting a​ longer or​ more severe pre-payment penalty .​
Statistically,​ unsolicited refinance offers have a​ much higher likelihood of​ coming from predatory lenders.
Be careful--all Good Faith Estimates are just that; estimates .​
They are all subject to​ change.
RESPA (Real Estate Settlement Procedures Act,​ a​ federal consuming protecting statue first enacted in​ 1974) prohibits any settlement service provider from giving or​ receiving anything of​ value for the​ referral of​ business in​ connection with a​ mortgage or​ charging fees or​ markups when no additional services has been provided .​
Mention RESPA to​ your lender,​ ask for a​ list of​ fees (they cannot charge you​ $25 for a​ credit report that cost them $8.50,​ for example),​ and be candid about shopping elsewhere if​ you​ feel slighted .​
At the​ same time,​ blindly shopping around may keep the​ broker from going the​ extra mile for you​ if​ something goes wrong and he/she feels that you​ haven’t placed faith in​ them.
Trust your gut .​
If something about your refinance transaction consistently feels wrong,​ there’s a​ good chance it​ is​ .​
Many lenders will gloss over the​ fact that you​ have a​ Right of​ Recession where you​ have from the​ day the​ loan closes until midnight three days later to​ cancel the​ deal,​ and you​ cannot be fined for that termination (except for losing any out of​ pocket expenses,​ such as​ an​ appraisal) .​
That being said,​ almost everyone feels some sort of​ buyer’s remorse soon after closing a​ major financial transaction,​ even if​ that transaction is​ in​ your best interest.

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