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Beware Mortgage Broker Banks When Refinancing Your Mortgage Loan
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Post-Bankruptcy Mortgage Refinance with Low Closing Costs
New York has exceptionally high title and settlement costs, and as a result, the state has the highest mortgage closing costs in the nation. While this won't necessarily stop you from saving money on a refinance, it can take a large chunk out of your savings account. To assist you, here are a few tips for getting a low closing cost New York mortgage refinance after bankruptcy:
Roll Your... Read mortgage refinance article
Get the Best Mortgage Refinancing Rate
Everyone loves saving money and qualifying for the best mortgage refinancing rate can save you a great deal of money on your mortgage loan. There are a number of mortgage refinancing pitfalls that result in overpaying thousands of dollars every year. Here are several tips to help you find the best mortgage refinancing rate while avoiding costly mistakes.
Mortgage Refinancing Rates: Chec... Read mortgage refinance article
Beware Mortgage Broker Banks When Refinancing Your Mortgage Loan
If you are in the process of refinancing your mortgage and are working with a broker, your mortgage broker could be robbing you blind without you even knowing it. Broker Banks are a special type of lender that is nearly indistinguishable from other mortgage brokers and are exempt from all disclosure laws protecting homeowners in the United States. Here's how to protect yourself from broker bank fleecing when refinancing your home loan.
When the Real Estate Settlement Procedures (RESPA) legislation was making its way through Congress and the Senate, your friendly neighborhood bankers lobbied intensely to be excluded from the proposed legislation. Millions of dollars changed hands and when RESPA became a law, lo and behold banks were exempt from the newly founded disclosure laws that protect American homeowners from predatory lending practices.
The RESPA loophole for Banks is why you should never apply for a mortgage with your Bank, but what about mortgage brokers? Mortgage brokers are required to disclose under RESPA, but wanted the same loophole afforded to your bank; as a result, Broker-Banks were born. Broker-banks are nearly indistinguishable from any other mortgage broker except for one key factor. Broker-Banks are exempt from the disclosure laws provided by RESPA. This means if a mortgage broker charges you a $1,000 fee for their services, they are required by law to disclose this fee to you. A Broker-Bank can charge you the same $1,000 fee without you even knowing it.
Broker-Banks take advantage of this loophole by exploiting the interest rate you are sold with your mortgage. That's right; you are sold an interest rate, not qualified by the lender. The Broker-Bank receives a bonus for selling you a loan with a higher interest rate. For every .25% extra you agree to pay on your mortgage interest rate, the Broker-Bank receives a bonus of as much as 1-1.5% of your loan balance. The Broker-Bank overcharges you, pockets a bonus from the lender, and no one is the wiser.
This is why you should never do business with a Bank or a Broker-Bank when it comes to your mortgage loan. The bad news is that Broker Banks are nearly indistinguishable from mortgage brokers. How can you tell if your mortgage broker is an actual broker or a Broker-Bank? You can learn this and more by registering for a free mortgage guidebook.
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Second Mortgage with Poor Credit
Many people with poor credit are hesitant when it comes to applying for a second mortgage because they fear that their credit rating will prevent them from getting approved. Fortunately, this couldn't be further from the truth. Lenders who offer second mortgage loans to Texas borrowers look at more than just credit rating. They also consider your earning power, your debt to income ratio, and the amount of equity that has built in your home.
Earning Power
When it comes to getting approved for a second mortgage loan with poor credit in Texas, your income or earning power is what is most important. Lenders need to know that you can afford to carry a second mortgage loan. Under Texas law, lenders are not allowed to approve you for a loan that you cannot afford to pay back.
Debt to Income Ratio
While the amount of money that you have coming in is important, so is the amount of money that you have going out. This is why lenders will take special care to examine your other consumer debts before approving you for a second mortgage loan in Texas. If you have a lot of debts, you could be considered a risky borrower. On the other hand, if your debt to income ratio is low, it will make your poor credit rating seem a lot less of a problem.
Equity
When you get a second mortgage in Texas, you borrow from your equity. If you have a significant amount of equity in your home and can afford the monthly loan payments, your poor credit will not affect your approval in the least bit. In fact, you may even find that lenders will be willing to compete for your business.
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Mortgage Sources
There are many different places you can get a mortgage.
Many different institutions offer mortgages, including commercial banks, specialized mortgage lenders, cr... Read mortgage refinance article
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Beware Mortgage Broker Banks When Refinancing Your Mortgage Loan
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