Pitfalls in Refinances

Home Loans

Pitfalls in Refinances
(presented by www.refinance-refinance.net - mortgage lenders)

By Ben Afzal

Rate and Fee Surprise

The largest surprise is a change in your loan when you go to sign your documents.

The interest rate may have changed substantially or the fees may have gone up.

They may be much higher than the initial good faith estimate that you received.

Make sure that when you go to sign your loan documents that you have the option to back out. If you can walk away from the loan you have the negotiating power.

Do not get yourself stuck in a corner when you are refinancing.

Sometimes rates and fees may change legitimately. This is usually because your credit rating may have plunged during the refinance process. Lenders may double check your credit at the last minute before sending out your loan documents.

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If the lender sees a sudden late mortgage payment or some other red flag they may even cancel the loan.

Debt Payoff Surprise

You may have current debts that a mortgage lender will want to pay off.

This can include your credit cards, students loans, car loans, and other debts.

If you have co-signed on someone else

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For additional Mortgage Refinancing information
and resources visit Mortgage Refinancing.
(http://www.refinance-refinance.net)
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This entry was posted on Wednesday, October 18th, 2006 at 2:29 am and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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