Fraudulent Mortgage Letters

Today I received a letter from a loan officer who works for “The Money Store”. The offer was that his company was given special permission to offer me a mortgage in regards to the stimulus package. Reduced rate, 5.00% and it was fixed. I did my calculations and this would cost somewhere around 5 points (that’s 5% of your loan amount), but not to worry he said, you can just roll this into your mortgage, what do you care, he said, your payment is going down. After speaking with the loan officer and asking “loaded” questions, I realized he was just another order taker who is part of the problem in the mortgage meltdown and not part of the solution.

The stimulus package that was released earlier this year for mortgages will not really help out too many consumers. The combination of mortgage insurance, adjustments to the rates based on your credit and the tightening of mortgage guidelines has made if very difficult for the consumer. Especially if you bought your home after 2004, chances are your mortgage is now equal to or greater than the value of your home. Mortgage Lenders no longer have 100% financing programs to help out.

I do take these offers (I have a file of them) and I forward them to the Division of Bank, these are the companies that continue to take advantage of the consumer.
If something sounds too good to be true, it usually is. It is always worth to investigate these offers but always proceed with caution. Lenders, Banks and Brokers get their money from the same source. Mortgage rates can adjust on a daily basis, they move according to the markets around the world as the stock market. If you are to call 10 lending companies in the same window of time, the rates should be within a ¼ percent of each company.
Remember, when shopping for a mortgage, a car or even a washing machine, a second opinion is mandatory.
I have been in the Banking industry since 1991, I have worked for the large lender, the small savings bank as well as the mortgage broker. At the end of the day, the rates and closing costs should be the same or similar. It all depends if you were able to get an honest loan officer who is not taking advantage of you.
If you ever need a second opinion on mortgages, rates, or closing costs, you can always call me. I can be reached at 978-264-4803. Bill Nickerson