Free Investment Advice

As you begin researching for the best refinancing deal, you will undoubtedly come across companies that offer “free” or “no cost” applications.  Remember the old saying, “If it sounds too good to be true, it usually is.”

Let’s face it - you must come across hundreds of emails offering a host of “free” merchandise, gift cards, and services.  It all sounds wonderful until you click on the offer and begin to read the terms and conditions.  Yes, ultimately you will have to buy or subscribe to something and then your name is placed among hundreds of thousands of other people whose names are placed in a drawing.  If there is an actual winner, he or she may or may not receive the prize originally offered.

Refinancing a mortgage through a lender or mortgage broker offers a similar analogy.  You may come across a lender online and think, “Gee, this is a really good deal!”  The problem is that there are very few lenders who offer anything for free, especially during this recession.  If they do, you can be sure they will add the cost to another area of the contract.

One of the most touted and respected agencies online is Americas Watchdog.  They are a consumer advocate who focus primarily on homeowner’s protection.  They are particularly effective in warning all homeowners who want to refinance to avoid any bank or mortgage broker who advertise “no point, no cost, or no fee mortgages.

According to Americas Watchdog, What is actually happening is the lender is getting undisclosed fees for inflating the homeowner’s interest rate/monthly mortgage payment, above the best rates available.  Typical borrowers could be looking at $250 to $350 or more per month in higher monthly mortgage payments, because they bought off on the line; no point, no cost or no fee mortgage.

In an effort to avoid this deception, here are some recommendations:

* “The consumer will in many cases not get the absolute best mortgage product that meets their needs.
* The consumer will get an interest rate that may be much higher than the best rates available.
* The mortgage transaction may be loaded with junk mortgage fees or a combination of junk mortgage fees, an interest rate that is too high or the wrong mortgage product”.

For more information on refinancing, check out http://homeownersconsumercenter.com/ for homeowners’ advice.