PITI the Fool - Mortgages

Mortgages

There is a growing problem in searching for mortgages. Often times, the mortgage provider knows far more than the person searching for mortgages - and they'll play you like the fool you is. So when shopping for home mortgages, people need to know how to protect themselves from fraudulent companies. PITI the Fool wants to help you identify the most common scams practiced in the industry, then beat 'em upside the head with your wad o' cash and say "you just a crazy man seein' things, punk!".

Prepayment Penalty Mortgage Scam

One of the most popular scams involving mortgages is the non -disclosure of a prepayment penalty. Often times, homeowners are unaware that they have a prepayment penalty option. They are reluctant to refinance out of their high interest rate loans, under the impression that they can not. To prevent this misconception, ask up front about a prepayment penalty for your loan. Most prepayment penalty is 6 month's interest on 80% of the balance. In addition to inquiring into your mortgages, ask to see the option in writing. Those lending fools gotta follow the rules too, and they are required by law to put up the info or get out.

Mortgage Service Comparison Scam

Shopping for mortgages can be even more complex when it comes to dealing with loan officers. Discouraging or taking away your option to comparison shop for mortgages is likely to be a scam. Sometimes loan officers will tell people their credit score will decrease if they talk inquire about too many mortgage companies. When in reality, the credit bureau allow multiple mortgage inquiries within 14 days. If done within the time limit, you score is not affected.

Mortgage Fee Scam

Among the most common scams is people paying overpriced biweekly home loan payments. Often times, people will fall victim to paying an outrageous amount for a program that they can do for free, themselves. Most people are unaware of how their private mortgages are paid. Companies will try to charge you between $400 to $600 to make bi-weekly payments. Unfortunately, people pay these fees because they are unaware that they can do it themselves. You have two options:

Paid biweekly- Take half of your principle and interest payment and add that to the two months that you get three paychecks.
Paid once or twice a month- Divide the principle and interest by 12 and add it to each month in your payment.

Second mortgages and Fraudulent Freddy

Any fool who be singin' " Freddy's Dead" is cool, but anyone who be singing a similar tune about the repayment on their second mortgages is gonna be dead wrong. Some lenders will try to sell you up the river when you take out cash against your home equity, but just because you dont know as much as them doesn't mean you cant know a thing or two;

know that your equity lends extra security to your loans, and you should see lower rates
know that your equity should not be used toward worthless purchases or money - wasting your investment is for fools!

Knowledge is power, but never as powerful as a blast to the head, so watch out Foo'!