Refinance Knowledge

Did you know, on a national average, homeowner's refinance their mortgage every 36 to 38 months! And still people get stuck with bad loans or bad experiences. Therefore it is more important than ever to increase your Refinance Knowlege. Having been in the mortgage and financial industry for over 6 years, I have heard many horror stories about people's experiences. I spend part of my time educating my customers about the process of obtaining a mortgage to help them increase their 'Refinance Knowledge'.

The more you know as a borrower the safer you will be next time you refinance. If you agree then you need to keep reading. Increasing your knowledge is the key to avoid being a victim. The reason people have bad experiences or end up with a loan they thought was something else, is because they simply lack the Refinance Knowledge to know any better. I'm not saying it's their fault. Everything should be explained properly and upfront by the loan officer or broker. Unfortunately in the lending world people don't have the same morals or level of integrity; some do, some don't. Therefore it is up to you to educate and protect yourself.

Here is one of the horror stories I hear often. I will tell you how to avoid being the victim.

"I got a letter in the mail yesterday from my mortgage company. It said that my that my new payment, starting next month, will go up almost $200.00! It said my interest rate will increase 2%. I told the loan officer I wanted a fixed rate when I took out the loan. I don't know if I'll be able to afford the new payment it's tight enough as it is. I hope I can find someone to help me refinance this mess."

Being a loan officer I hear many stories like this almost every day. The Federal Government has created laws to help protect you. These laws are called the "Truth In Lending Act". But if you don't know about them they won't do any good. One very important law that you should know about is your right to recind.

The Right of Recission

You have the right to recind, back out, or cancell the loan without any penalty or fee. It states that you have 3 days to review the loan documents and make sure your loan is what your were told it was. The recission period ends midnight of the thrid day after signing the loan. The law does not allow you waive this right. You simply need to fax the signed recission page back to the loan officer or lender. You do not need to give any explanation for your decision.

This law only applies when you refinance. Home purchases or investment properties are exempt from this law. It only applies to your primary residence. This law is in place to protect you and after the three days are past you are contractually obligated and cannot back out. Please use the time you have to review the entire contract.

I am sharing this information with you because many loan officers or brokers won't. If more consumers new their rights they wouldn't end up with a mortgage they can't afford later. If you have any questions or want to learn more to increase your refinance knowledge then please visit my blog. http://refinanceknowledge.wordpress.com/