Pre-Qualification Form
Government Assistance
Counseling Agencies
Guide for Professionals
Settlement and After
Rules for Refinancing
Avoiding Predatory Loans
Avoiding Foreclosure
Link to Manna, Inc
Rules for
Refinancing
These rules will help you obtain a good mortgage
with a fair rate, low fees, and NO surprises.
1. Focus, first and foremost, on protecting the equity in your home.
2. Pay only for a credit report and appraisal, costing no more than $400 or so, before signing and settlement.
3. Do your loan search at respected lenders, including major banks.
4. Delay taking the first loan offered. Explore more than one lender.
5. Avoid bad loan terms and surprises by choosing a truly reputable lender.
6. Fully explore the terms, e.g., recapture, of 2nd mortgages you have before you refinance. Paying off good, low payment 2nd mortgages could be a big mistake.
7. Have an impartial mortgage expert review your proposed loan in detail.
8. Do not refinance if you have any doubts or unanswered questions about terms and costs of the loan.
9. Be very cautious about loans that seem too good to be true — they often are!
10. Do not be pushed by debt collectors to refinance to consolidate debts, putting your home at risk. Explore alternatives.
11. Be cautious about refinancing with the finance company or high-rate "sub- prime" lender that may now have your mortgage.
12. Keep your long-term mortgage unless you get a much lower rate.
13. Be very cautious about refinancing a small mortgage for the sole purpose of obtaining a lower rate.
14. Be careful about adjustable rates, balloons, or pre-payment penalties.
15. Be reluctant to accept add-ons like mortgage life or disability insurance.
16. Do not refinance a debt if you have a valid legal reason not to pay. Resolve the issue before you refinance.
17. Be very cautious about promises of big tax benefits of any mortgage loan, especially on small loans.
18. Never sign a blank document to be filled in later by a lender.
19. Know that some refinance offers which you may receive may not be truthful.
20. Know that you have a 3 day “right of rescission” (right to cancel) after signing and settlement.