Thinking about refinancing, or better yet, getting calls from mortgage companies about refinancing?  Be very careful before you take the deal.

One ploy that some of the folks in the mortgage industry seem to be using to get business these days involves calling someone with a mortgage and telling them that they can refinance at a very low rate with no cost out of pocket.

True, you can do this but although you might not have to pay anything upfront, it will cost you.  How?  When you refinance, the mortgage company will roll all of the costs into the new mortgage including the costs to buy down the rate.  So, although you are getting a low rate, you are paying for it and in most cases the mortgage amount will be higher than it was before you refinanced.

Check with your current lender, an attorney, or a realtor that you trust to look into this for you before you sign anything.

Just remember, if it seems too good to be true, it probably is.

Wishing you sunshine everyday and the home of your dreams,
Jeri

P.S.  If you are thinking about buying a home, consider attending our free Homebuying Seminar.