So you see a fancy advertisement to refinance your high rate mortgage and 'take advantage' of new FHA lower rates and save $250-750 a month with Top Dot. But when you sit down for a quickly closing on a 'RE-FI' as they call it, tons of extra costs are added to your old note balance. $200,000 old note at 7.5%, on the surface lowers the 7.5% to 6%, but the 200,000 debt on your house/coop is now $236,708.50.
When you walked in at 10am to their fancy office in jericho long island, you owed 200K at 7.5%, now you owe 36,708.50 MORE!!! The monthly may appear lower by $140 dollars, but now your OLD-12-years-left-to-pay, is back up to 20-25-or even 30.
They use a factor LTV—loan to value-and work magic to 'approve your numbers', even do you a favor and let you add your mother-in-law, or son, or nephew, or friend to the 'note' so it looks like you have more income - DO YOUR SELF A FAVOR - wear a tape recorder-and play back the hypnotic jargon - because with five high pressure sales people surrounding you. Smiling of course.
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