| If you are refinancing your mortgage there are a | | | | Predatory lenders try and sell bad credit loans to |
| number of mistakes that will cause you to overpay for | | | | homeowners with good credit in order to charge |
| your new mortgage loan. Doing your homework and | | | | higher rates. The only way to know what fair rates |
| researching mortgage lenders will help you avoid | | | | and fees are for a homeowner in your financial |
| making these mistakes. Here are three things to watch | | | | situation is comparison shop from a variety of |
| for when refinancing your home loan. | | | | mortgage lenders. When you comparison shop the |
| I. Watch Out for Balloon Payments | | | | right way it is easy to spot mortgage lenders that are |
| If you accept a mortgage with a balloon payment you | | | | trying to take advantage of you. You can learn more |
| will be required to pay the amount due on a date | | | | about comparison shopping for the best mortgage by |
| specified in your loan contract. If you are unable to | | | | registering for a free mortgage guidebook. |
| make this payment you will have to refinance the loan | | | | III. Be Careful With Adjustable Rate Mortgages |
| or sell your property to avoid foreclosure. Mortgages | | | | Adjustable rate mortgages have more risk than |
| with balloon payments are typically used by real estate | | | | traditional fixed rate mortgages. Many homeowners |
| investors as a source of short term financing; | | | | are enticed by the introductory rates and low payment |
| however, predatory mortgage lenders use them as | | | | amounts; these homeowners often don't realize their |
| part of a ploy to take your home. Unless you know | | | | payments will go up significantly at the end of the |
| exactly what you are getting yourself into avoid any | | | | introductory period. In addition to this payment increase, |
| home loan with a balloon payment. | | | | the mortgage lender will adjust your interest rate |
| II. Watch Out for Excessive Fees & Rates | | | | periodically and change your monthly payment |
| If you are a homeowner with poor credit you can | | | | depending on prevailing interest rates. |
| expect to pay more for your new mortgage. There | | | | You can learn more about your home loan options by |
| are lenders that will take advantage of your credit and | | | | registering for a free mortgage guidebook. |
| charge you excessive fees and rates. Some | | | | |