Beware the Dangers of Refinancing Your Mortgage
It’s true, refinancing results in plenty of significant financial benefits for homeowners. However, there are also considerable risks associated with a home loan refinance. For this reason alone, if you are considering refinancing, it is important for you to be aware of these pitfalls so that you can avoid them.
If you are struggling to keep your head above water in what seems to be a sea of debt, you may think that refinancing and folding all of your debts into your mortgage is a wise decision that will help you start anew with a lower interest rate. While this may be true, you are also risking tying unsecured debts (a debt without collateral, like credit card debt) into a secured debt (a debt that is collateralized by pledging an asset, like your mortgage). If you are seeking refinancing as a debt management strategy, be sure you obtain the lowest mortgage interest rates possible and negotiate a good loan with reasonable terms.
Predatory Lending Practices
Many homeowners don’t understand the finer details of home loan refinance; this puts lenders at an advantage and allows them to dupe unsuspecting homeowners into unfair and illegal dealings that sometimes cost them their savings and their homes. Before you approach your New York home loan refinance, be sure to do your homework so that you understand the nuances of refinancing. Don’t let yourself be a victim of mortgage lending company greed.
Junk Fees and Unnecessary Markup
One of the major drawbacks of refinancing is the high closing costs. These fees can be more than an inconvenience when they add $10,000 onto the principal of your loan. While mortgage brokers do deserve to be paid for their services, many of them demand too much and persuade you to accept higher interest rates than you qualify for in order to line their own pockets.
Since my site was created with the help of a retired mortgage broker with over 27 years of experience in the industry, I have all the tools you need to educate yourself about New York mortgage refinance. Register for my free Underground Mortgage videos which will take you step-by-step through refinancing your mortgage and teach you how to get a wholesale rate with no junk fees.
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