Mortgage Refinancing - Loan Flipping Finance Articles | October 26 kobe bryant shoes australia for sale , 2010 If you're falling behind on your mortgage payments, or if you're struggling with growing credit card debt, utilities, and other bills, you may become the easy target of dishonest mortgage lend...
If you're falling behind on your mortgage payments, or if you're struggling with growing credit card debt kobe bryant shoes australia , utilities, and other bills, you may become the easy target of dishonest mortgage lenders or brokers hoping to profit. Solicitations come in a variety of ways-by mail, phone, radio, newspapers kevin durant shoes australia , flyers, and even home visits-offering to provide refinancing, fast cash, and a way out of debt. Refinancing to obtain cash translates into a larger loan and most likely means higher interest rates and high-priced refinancing fees. One form of predatory lending con artists use on desperate homeowners looking to refinance is called "loan flipping."
Loan Flipping Earning trust by using their knowledge and experience, a mortgage lender can talk a homeowner into refinancing their mortgage, even though they'll gain little from the transaction in the long run. Borrowers get convinced to go with a high-rate www.cheapbasketballaustralia.com , no out-of-pocket, but high-cost loan and are advised to refinance again within a short period-often only six months to a year-to obtain a lower interest rate or monthly payment. Unfortunately, the homeowner may not realize that the loan term is longer and the total cost of the loan increases. When borrowers roll closing costs into the mortgage, the cost of the loan increases each time, without any real corresponding benefit to the homeowner. Once you sign the papers, you may find that the loan and monthly payments are much higher than expected-even unaffordable cheap nike basketball shoes australia , putting you at great risk of losing your home.
Ballon Payments A serious twist with loan flipping occurs when a balloon payment is snuck into the fine print. Most homeowners obtain a thirty-year mortgage, but with loan flipping, they may unknowingly agree to a two, three, or five-year balloon payment. At the designated time, the homeowner has to pay off the mortgage or refinance again. If they cannot cheap adidas basketball shoes australia , they can completely lose their home. It's important to remember that borrowers
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