Refinancing Advice For Friends
Ask Kate: Refinancing Advice For Friends Here is Tammy's refinancing advice for a friend BEFORE she makes a commitment to a mortgage lender... Before you commit to a mortgage lender, there are certain questions that you should ask that will help you understand your loan and negotiate the best deal possible.
1-Which Type of Loan do you advise and has the lender explain the pros and cons?
The Lender should help you understand each one of these loans. If you don't like the answers you receive, continue shopping.
2-What Are All the Costs including not only fees for the lender's, also related third-party vendor fees?
The lender should be more than willing to disclose what their interest rates are for different types of loans, as well as the annual percentage rate, appraisal fees and title insurance.
3-Will the Lender Guarantee the Good Faith Estimate According to Real Estate Settlement and Procedures Act (RESPA)?
This is an estimate on the amount of money that it will cost to close your loan. The lender is required by federal law to give to you this information. If your lender refuses to stand behind its estimate, go elsewhere.
The reason for this is because most likely that there will be some money surprises on closing days.
Kate Answers: Refinancing Advice For Friends
Hi Tammy, No one asks for or appreciates surprises on closing day. The problem is how little this type of mortgage information which can help avoid unpleasant surprise is taught in school. That's why I created this website!
If all homeowners have access to refinancing advice and home buying tips, it will strengthen households AND the American economy. See the links at the bottom of the page for more tips to help homeowners and home buyers.
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