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  The Society for Consumer Advocates and Mavens

News You Can Use!

DEBT CONSOLIDATION MORTGAGE BROKERS

Homeowners who re-finance their homes to reduce their exposure to debt, like the balance due on their credit cards, car loans, school loans and so forth, and in turn seek to get a lower monthly home mortgage payment as well, up to 33% of these homeowners actually end up with a higher monthly home mortgage payment than they had before because of unethical mortgage brokers! Remember, the mortgage broker's job is to sell you on a loan or a re-financed loan and too many brokers may not really care if the loan actually ends up putting you in a worse financial bind than you were in before you sat down with the broker!

Too many homeowners do not always read or understand mortgage contracts and may simply trust what the broker tells them which is the worst thing you can do. If you get "railroaded" into a loan that is not better for you but worse it is likely still legal and once you sign on the bottom line you may have little, if any, legal recourse! Consequently, you had better understand completely what you are signing off on and know full well what your new interest rate will be on the loan and know exactly what your new monthly home mortgage payment will be BEFORE you sign anything!

SUPPLEMENTAL SOURCE: CBS-TV NEWS 12/3/04

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