I had a mortgage company call me and say that they can lower my monthly payment $140-200 a month, and then I spoke to them again and they said they might be able to say me up to $400.00 dollars. Is this some kind a skeem? I checked out the company online and it looks legit. How can they actually lower it that much, will I be paying them to much, where it wouldn't be worth it?
2007-07-05 07:12:44 · 6 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
Yes, they can. They'll shift you into an Adjustable Rate Mortgage (ARM) where you will have a lower payment will last only a short time, like 3 years or less. Then it adjusts upwards at a much higher rate, and higher payment.
It's a good move if you intend on selling before the rate adjusts upwards, or if interest rates are unusually high right now, which they are not. Watch out for excessive fees. Be 100% you understand all the terms of the loan before signing.
2007-07-05 07:17:33 · answer #1 · answered by Uncle Pennybags 7 · 0⤊ 0⤋
good question. Yes it ids possible if they consolidate some of your other debts into the mortgage. I do this all the time and save people some times 5 times that amount. Also your mortgage interest is tax deductible and credit card interest is not. The average consumer does not know that just a $2000 credit card @ 18% interest and paying the amount requested monthly will take up to 33 years to pay off any way. I always tell clients they are spending this money now. If you pay the same amount of he savings on a new mortgage you will pay off many years earlier.
It is a no brainer.
I am a mortgage banker in TN &KY
2007-07-05 07:23:09 · answer #2 · answered by golferwhoworks 7 · 0⤊ 0⤋
Usually the escrow consists of real estate taxes and insurance premiums. If your real estate taxes have increased since you purchased your home or if the annual insurance premiums have risen then, naturally, your monthly escrow payment must also increase. You need to get an explanation for the increase from your mortgage services. By the way you should always purchase 100% guaranteed cost replacement insurance for your home. Otherwise you will be co-insuring your home against any loss and that is a lousy decision as you will find if you actually suffer a loss. Good luck getting the information you need.
2016-05-18 23:42:23 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It is a scheme in that the savings are temporary and you pay more in the long term. If you have a present mortgage that is less then 2 years old it will cost you more in the long run.
The fact that they cold called you would have me worried. If they do not have your credit report, income, etc etc there is NO WAY they can truly know if they can save you any money.
Also, are you SURE that the company you looked up online (try bbb.org) is the one calling? I have had cold calls from foreign countries claiming not only to be a local bank, but MY bank! I would not do business with them unless you can do it in a brick and mortar establishment, you run HUGE risks putting your identity and credit information on the internet or over the telephone, you just don't know who/where it is going.
2007-07-05 07:31:30 · answer #4 · answered by Landlord 7 · 0⤊ 0⤋
It depends on the interest rates of the current loans you have. If they lower your rate and have reasonable fees, it may be beneficial to refinance. Make sure you get a fixed rate, though.
I would recommend avoiding ARMs and Option ARMs now because those are risky loans for some people.
2007-07-06 07:01:52 · answer #5 · answered by mortgageguy 2 · 0⤊ 0⤋
Upfront fees, and a longer length to the loan; instead of being done in 5 years, you get to pay 10
2007-07-05 07:16:05 · answer #6 · answered by wizjp 7 · 0⤊ 0⤋