According to the Chairman of the Federal Reserve, well-informed homeowners are much more likely to avoid predatory lenders when refinancing than the majority of Americans who don’t fully understand how mortgage loans work. If you’re considering mortgage refinancing you can literally save yourself thousands of dollars and numerous headaches by being prepared.
Well-informed consumers, who can serve as their own advocates, are one of the best lines of defense against the proliferation of financial products and services that are unsuitable, unnecessarily costly, or abusive.”
Recent changes to the rules that govern how brokers can be compensated for their work can save you a lot of money if you know how to take advantage of the new laws and what kinds of lenders to avoid. Did you know your bank is exempt from all of the protections for homeowners found in the Real Estate Settlement Procedures Act? Did you also know that your broker can now only charge you an origination fee or accept compensation from the lender for marking up your mortgage rate but not both? Despite these new rules to help you avoid being taken advantage of there are numerous junk fees you’ll want to avoid when choosing the best refinance companies.
You can learn more about avoiding unnecessary mortgage rate markup and lender junk fees by checking out my free Underground Mortgage Refinancing Videos.