Mortgage and Refinancing Information Channel:
We would like to thank the local libraries, schools, and universities for recommending students to visit us when doing research on any of our information topics.
Home Equity Loan - Beware of Equity Stripping Scam
The market for mortgage refinancing has been brisk during the last few years. The boom in business can be attributed to interest rates that have been at or near historic lows, and to lenders who have more money to lend now that they aren't investing in risky tech stocks anymore. Low rates and agreeable lenders are certainly good for consumers who might be interested in refinancing their home or taking out a home equity loan. Those considering such loans should be aware that the booming market for refinancing has led to increased competition among lenders. And when the competition increases, so does the number of lending scams.
These days, lenders are surprisingly aggressive. It's not unheard of to have people knock on your door, asking if you would be interested in refinancing your home. Lenders that are eager to lend you money are great, provided that you are actually interested in borrowing. If you are, then you should be careful Make an effort to thoroughly investigate your lender if you do not have a previous relationship with them.
A scam that is increasingly common in today's market is a lending scheme known as "equity stripping." A homeowner applies for a home equity loan, or perhaps applies to refinance their home. A lender then encourages the homeowner to borrow more money than they can afford, and perhaps "assists" by falsifying some information on the application. The lender does this with hopes that the homeowner will default on the loan. When the homeowner defaults, the lender forecloses on the property, sells the property, and keeps the home's equity as profit.
This is one of many scams that can currently be found in the mortgage industry, and one that can be avoided if potential borrowers will take the time to do a bit of research before signing on the dotted line. Homeowners who are interested in refinancing their home should investigate prospective lenders before doing business with them. Contacting friends who have recently refinanced or the local Better Business Bureau would be a good place to start. Lenders who call you out of the blue or knock on your door are probably best avoided.
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation information and HomeEquityHelp.net, a site devoted to information on home equity loans.
MORE RESOURCES updated Tue. June / 06 / 2023
It May Cost More to Refinance a Mortgage Than You Think Yahoo Finance
The Great Pandemic Mortgage Refinance Boom - Liberty Street Economics Liberty Street Economics -
Compare Today’s Refinance Rates | U.S. U.S News & World Report Money
How to get a low-cost mortgage refinance Yahoo Finance
What is mortgage refinancing and how does it work? Yahoo Finance
UK mortgage borrowers face painful refinancing, warns think-tank Financial Times
No Regrets Getting An ARM Despite Higher Mortgage Rates Financial Samurai
Total Household Debt Reaches $17.05 trillion in Q1 2023; Mortgage ... - Federal Reserve Bank of New York
Total Household Debt Reaches $17.05 trillion in Q1 2023; Mortgage ... Federal Reserve Bank of New York
Fixed rate cliff spurs record mortgage refinancing MacroBusiness
Refinancing your mortgage could save you thousands — here are some of the best refinance lenders - CNBC
Refinancing your mortgage could save you thousands — here are some of the best refinance lenders CNBC
How does mortgage refinancing work? CBS News
Should I Refinance My Mortgage? - Buy Side from WSJ The Wall Street Journal
Here’s how sharply mortgage refinancing has dropped off Yahoo Finance
Today's Mortgage, Refinance Rates: May 29, 2023 | Rates Still High Business Insider
CFPB Launches Effort to Spur New Opportunities for Homeowners ... - Consumer Financial Protection Bureau
CFPB Launches Effort to Spur New Opportunities for Homeowners ... Consumer Financial Protection Bureau
Today’s 30-year mortgage refinance rates hit lowest levels in 15 days | Oct. 28, 2022 - Fox Business
Analysis | It Will Pay to Wait to Refinance Your UK Mortgage The Washington Post
Why Older People Can’t Get New Mortgages The New York Times
Should you refinance your mortgage to pay off debt? New York Post
VA refinance rates - current VA loan refinance rates today Business Insider
Small Business Loan Refinance Bankrate.com
Current 15-year refinance rates today Business Insider
Refinance Closing: An Overview Zing! Blog by Quicken Loans
What Credit Score Is Needed To Refinance a House | Chase Chase News & Stories
Compare Current 30-year Refinance Rates Business Insider
7 Refinancing Programs for Seniors Total Mortgage
Today’s mortgage refinance rates: 10- and 15-year rates hold steady | September 20, 2022 - Fox Business
Today’s mortgage refinance rates: 10- and 15-year rates hold steady | September 20, 2022 Fox Business
Understanding A No-Appraisal Refinance Zing! Blog by Quicken Loans
John Cornish Offers Guidance on Home Refinance Options Yahoo Finance