The biggest lies in the mortgages
"Honesty is the best policy", so the old saying goes
but how honest are loan providers? Do they really tell the truth or in many
cases they state the truth in such a polished way that it actually is a lie.
There is so much of ambiguity that you really do not sense that this could be
false and one fine day you are faced with a rude shock…a slap in the face and it
hurts doesn't it? One needs to be aware of the biggest lies in mortgages…facts
that money lenders tell you which are not actually correct. Be alert and
awake…no one should be able to deceive you.
The first lie is about the interest rates…you very often hear this "Your
interest rates are locked". It is very much possible that the lender is lying
and is locking the interest rates temporarily at his own risk. They do it very
often to increase their markup. In such cases the borrower may either end up
paying higher market rate or canceling the transaction. So always try to get a
letter stating that the rate is locked. The next lie is about prepayment
penalty. The borrower is informed that he has no prepayment penalty but later
while refinancing discovers it is there. So always check the Truth in Lending
(TIL) disclosure form as it will tell you whether the loan has a prepayment
penalty or not. Another lie to be cautious about is that you will get the market
price on the day of locking. The market price on that day is told to you by your
loan provider and he safely pockets a substantial amount without raising a cloud
of doubt. Always select providers who have market prices listed online so
that you can check that will clear all doubts. Also be aware about the ambiguous
truths and polished ones which are actually a lie.
|
