Freedom Mortgage will lead you to believe that your payments will be lowered by lowering your interest rate. They will charge you a low (couple of hundred dollars) lock-in fee and close the mortgage in a matter of a week or so. They will email you and mail you disclosures and revised disclosures and packets of information for you to read before your closing (in a couple of days byt he time you receive everything). They will hire a notary to come to your home and close the mortgage. Your payment will look lower, but read your truth-in-lending statements and disclosures carefully. You are bound to find that they will have increased your PMI payment to perhaps half the mortgage payment. The rest will consist of interest and possible escrow. A couple of dollars will go to your principle. You will be elated that your interest rate will be low but it will be made up for in HIGH PMI. The reason the payment still goes down is because the length of your loan is put out to say 30 years. Just think, if that was the original term, but you paid down even just 5 years of it. You're basically going to repay everything you just paid in 5 years, in PMI, to have a slightly lower payment. It is a scam that luckily, my husband and I, did not fall for. We did however begin the process with them and decide not to close AT CLOSING because of what we were apalled to find! I would also like to mention that the customer service center is very unknowledgeable and poorly trained. I know this because I was once not able to reach our loan processor so I called a generic toll free number provided on the web site. Each time I did this, a different representative provided me with differenn information. I was also informed for several days in December that their computer systems were down and not accessible at all! They would take your name and number as well as your account info., loan number, etc. And claim to call back. They would not return phone calls.in addition, they would only provide a first name when you asked whom you were speaking with. Four of the individuals I spoke with did not note even my account that I had called, and had probably provided a false first name because not one of them could be identified when I called back and explained who I was told I had spoken with. This is a poorly maintained company and I would just like to warn one and all, don't allow yourself to be taken advantage of, no matter how good the deal looks or sounds. Buyers/refinancers beware!!
0 comments