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Contributed by mm | October 15, 2006 2:38 AM PST
Taking a mortgage is probably the largest financial transaction you have in your life, and you should pay extra attention to these potential red flags:
From CNN Money:
Remember, scammers are usually real estate insiders, so recognizing a scheme may be harder than you think. But there are some red flags you should look for.
Here's one of them: Your broker insists you use a specific lender. The bottom line here is that a broker shouldn't care what lender you choose. That's your right.
Another red flag: Lenders who encourage you to borrow more than you can afford. You should have a clear handle on what your financial comfort zone is.
You should also sound the alarm if you are not given copies of loan documents you sign. This is generally a routine practice.
And finally - don't be rushed. A loan officer shouldn't rush you through the process. Don't feel pressure to sign anything without reviewing the forms.
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Enjoy the latest personal finance news and commentary at PFBlog Network.
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How PMI Premiums Are Decided (October 20, 2006)
Perhaps the best advice for PMI is to avoid one, either through savings toward a larger downpayment, or using piggyback loans to bypass PMI.
Major Private Mortgage Insurance (PMI) Options (October 20, 2006)
Bankrate's Amy Buttell Crane explains that there are three options when you cannot pay 20% of home price as downpayment. Obviously, piggyback loan is usually a better (read: cheaper) option than the other two.
Your Can Deduct Costs Of Refinancing! (October 14, 2006)
Do you know on top of a low interest rate, you can also get some tax benefits by properly deducting cost associated with a refinanced mortgage? Here comes IRS Tax Tip 2006-55.
ARM Holder Beware: The Mortgage Time-Bomb Is Ticking (October 10, 2006)
Although things will turn bad before they turn good, if you just sign up for 3-year or 5-year adjustable rate mortgage, you may want to wait out the storm. After all, the interest rate may have peaked, and in 3 years time it will be ...
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