Your clients have got themselves a great 30 year fixed rate loan at a wonderful rate of 5.5%. So they close on their home and that is when the letters start. Refinance! Save money each month! Pay off your credit card bills! Heck these letters start before the house has even closed because of the credit bureaus selling their information to every loan chasing mortgage broker out there.
But, what you really need to do is warn them about is the scams out there. The misleading letters that attempt to get people to switch their mortgage from their current lender to some scum bag that tricks them in to a higher loan percentage and huge closing costs.
My parents recently closed on their new home and within days they started receiving letters saying they should refinance to save money. But, one that they got really concerned them and they almost fell for it had they not called me first.
The letter said that, "Your interest rate lock expires in 60 days and that your interest on your current loan will go up if you don't call in today and lock in your rate." They thought this was from their current lender and panicked that they didn't have a 30 year fixed like they thought and that in 60 days their interest rate was going to rise and they wouldn't be able to afford the payments if it went up too high.
I assured them that they had a 30 year fixed and even pulled their loan paperwork out and checked it with them again. If they read the fine print, they would have seen that it wasn't from their current lender and that they may not have an adjustable rate mortgage.
But, had they fallen for this, they very well could have refinanced within 60 days of closing, costing them 1.5% higher interest rate per month and an additional $10,000 in closing costs. So warn your buyers that these letters are out there and they are just out to get in their pockets. They need to just put them in the circular file by their desks.
Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739
Todd Clark and the Friendly Home Team
Knipe Realty
Todd@IFoundYourNewHome.com
Phone: (503)524-9494
Fax: (503)622-8739
I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard.
All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.
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Great advice. Thanks Todd.
Todd- This would be a great thing to warn our clients. I always think one step further and wonder how do all of these scams get this information! Thanks
Todd, I appreciate your post. It is very good advice that I plan to share with clients. Enjoy the rest of the hliday weekend, Janice Roosevelt, Kennett Square, PA Keller Williams
Todd, there's a scammer born every minute, and if these guys spent all their energy on something socially useful, they might actually make a unch of money with it!
TC,
This is not a funny story!!! This is akin to 'financial stalking'...one shouldn't have to read the 'fine print' to know the truth!!! Thanks, Fran
I closed a house the other day and the buyer must have asked a dozen times if she was absolutely getting a fixed rate, no pre-payment-penalty loan. She said that's what they say to ask on TV.
Hi Todd... It never ceases to amaze me how many scams there are out there and how brazen they are! Thanks for sharing the "heads up"!
Todd, thanks for this post! Scam artists are certainly everywhere. I appreciate the heads up on this ploy.
Todd,
This is really important advice. I have had many clients call me abouts advertisements that souned too good and almost always were, like 1.99% option arms.