Refinancing can be frustrating when, after all is said and

done, you find you've been ripped off! Here is an easy

guide to help you save your money and have peace of mind.

It's so easy today to lose money unnecessarily when you

refinance. Hidden fees and penalties, terms you did not

completely understand or a hard core loan officer who

avoids issues you may have can create headaches you don't

need! Let us show you how to easily protect yourself and

come out way ahead.

Knowledge Going In...

Go online and browse for major lender websites like Bank

of America, World Savings, Indymac Bank, etc. Every one

should have full descriptions of refinance programs

currently available. Look through the fixed rate and

adjustable rate mortgages and get a good understanding of

how they work. These big lenders spend a lot of money on

easy explanations of their mortgage refinance programs.

Take advantage of them.

Making Contact

In talking with a lender, make sure the

loan officer doesn't avoid any of your questions. If they

get off track and evade issues, move on to the next lender!

And ALWAYS get a good faith estimate and full details of

the loan program you are interested in before making any

decisions to proceed with them. There will always be

questions once you see these that may give you pause.

Don't Let Them Pull Your Credit Report Yet

If you give every home mortgage refinance company a green

light to pull your credit, this can affect your score

negatively. Wait until you find the company you trust with

the program you want. They need a good idea of how your

credit is to quote you properly. You can call the major

credit reporting agencies and request a copy of your credit

report and then fax it to them, or, have them send you a

Borrower Authorization Form which gives them permission to

pull your credit.

Go Over The Fees

The fee schedule in a refinance can often include bogus

fees- fees made up to inflate the profit of the loan

officer. Only pay for necessary fees. Go over it carefully

with them. And remember- the origination fee is always

negotiable!

Careful of the Prepay Penalties

There is always the possibility of prepay penalties,

especially with adjustable loan refinance programs. The

term of the prepay can be reduced or eliminated by paying

some points. But if it's a great loan that suits your

purposes, then save your money. Most prepays are 2 to 3

years in length. Most people refinance every 4-5 years.

The Final Approval

Once the lender has received your full refinance package

and appraisal, upon approval of your loan, ask to see the

fee schedule from the lender. Make sure again that there

are NO junk fees.

A Final Note...

When looking at loan programs, there are

all kinds with different advantages and disadvantages. TAKE

YOUR TIME! Make sure you discuss with your loan officer ALL

the possibilities. For instance, an interest only option

might be available, or a longer term on the limited fixed

rate program might be better for you. If you follow these 6

simple steps we've outlined, you will come out way ahead

and save yourself time, aggravation and most of all...MONEY!