Mortgage : Home Loans : Refinance : Home Equity Loans

By Louie Latour

If you are in the process of mortgage refinancing you need to be wary of overpaying for your loan. Mortgage vultures overcharge you and even structure their loans to promote foreclosure so they can take your home. Predatory lending practices are common in the United States; however, if you take the time to do your homework and research mortgage offers, abusive lenders are easy to spot. Here are several tips to help you avoid the vultures when mortgage refinancing.

Mortgage vultures are any company or broker that takes advantage of you when mortgage refinancing. This describes the industry as a whole, because wholesale lenders encourage retailers to mark up you interest rate unnecessarily. Mortgage companies and brokers have a subtle way of disguising the way they overcharge you. What happens when you apply for mortgage refinancing is the wholesale lender qualifies you for an interest rate and provides your mortgage company or broker with a written guarantee of the interest rate.

Your mortgage company marks up the interest rate and gives you a separate written guarantee. If you agree to the terms and take out the loan, you are paying more than you should for that mortgage. Mortgage companies and brokers mark up your interest rate because the wholesale lender pays them one point, or one percent of your loan amount, for each .25% they get you to overpay for mortgage refinancing. The mortgage company will never tell you they

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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 Saturday, December 2nd, 2006 at 3:54 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.