Question:

What else to know about home mortgage scams?

Answer:

Home mortgage scams are popular among brokers and even lenders. Here follow several mortgage scams, other than not locking loan with lender, false discounts, or junk fees.

Home Mortgage Scams You Might Know Less About

If you opt for a floating rate until the loan closes, market rates could fall but you still get quoted a higher rate. That happens if the broker has decided to cite you a higher number he has chosen when closing comes, since the market rate is what loan providers say it is. Sometimes a loan provider may tell you a higher rate even though there is no increase. To protect yourself from this, you'd better buy a lock cap or ask for a today's quote to know for sure what today's rate is.

Another broker's home mortgage scam is presenting a no point loan falsely as a no cost loan. No cost loans should have the same APR as the interest rate. If the APR is higher you are getting some substantial fees.

Before you sign a loan agreement, make sure you do not have a prepayment penalty in the contract that you never heard of before. This is to avoid a common mortgage scam as lenders often offer one extra point to brokers for inserting lender favorable provisions in the contract.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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