Steve
Corona,#2Consumer Suggestion
Mon, October 10, 2005
Matthew, I am a mortgage broker in California and here are some questions for you and some advice. Find out how your prepayment penalty is calculated. Typically it is 6 months of interest, ($150,000 mortgage @ 7.99% x 6 months = $5745.00) Whey they say "Two Year" or "5 year" that is the length of time you are exposed to the penalty, not the amount. If your credit scores have improved in the last 2 years and you have picked up a little equity in your property, it is highly likely you could benefit from refinancing, even with paying the prepayment penalty. The PPP is 100% tax deductible in the year you pay it, so get it done before 2005 ends. Stay away from the companies that typically lend to sub-prime borrowers. Names like Ameriquest, Aegis, Novastar, New Century, First Franklin, Fremont, Decision One, HSBC are lenders who primarily do sub-prime mortgages. My suggestion is to get a recommendation from a friend, family member of a mortgage broker who did a good job for them. Try to qualify for a mortgage that is not "sub-prime". You could try steve at mortgagegroupdirect dot com for a no obligation evaluation Even with not so perfect credit, there are MANY ways to make a loan work, not just the easy sub-prime way. Good luck on that!
Matthew
shawnee,#3Author of original report
Mon, October 10, 2005
They sent up paper work to lockin at 10.99% not the 7.99% we were suppose to get back in May when we first contacted them and the refused. Their records show this and note that we called and asked for the conversion in May to lock in our 7.99% (not good but better then 10.99or the 15.99% they were going for). They are also trying to stick with the 5 year prepayment penalty instead of the contracted 2 year we agreed to by signing the page. What should we do lock it in and turn it over to our attorney. At this point I am feed up with this "company" --bookie, loan-shark. If I do nothing they are going up in December, but if I lock in now we don't lose even more? If we sign these papers would we have a argument in court to recoupe this maladjustment of the intrest rate? People beware of this mortage company! they are either morons or crooks. I am still trying to determine which all I know for sure is that no one there is in a hurry to help their customers.
Tom
Gahanna,#4Consumer Suggestion
Sat, October 01, 2005
hi guys my name is tom and i am a state licenced mortgage broker in ohio. go back to the papers you recieved at closing. Look at the HUD that breaks down your costs. Then go look at your bank NOTE. your note will specifically outline the terms of your mortgage. i suspect it is a 2 year prepay. if that is the case refinance right away . they cannot add in an 'addendum' to the note without your consent. dont let these turkeys try scare tactics to keep you in this ridiculous mortgage.