Home Refinancing for People with Bad Credit – How to Avoid High Fees

Jul 13 2020 Published by under Uncategorized

Avoiding high fees when home refinancing with bad credit is as

important as finding low rates. With fees adding up to thousands of dollars,

make sure that you are getting the best deal by comparing lenders. Also

look at other types of credit to securing cash out financing.

Ask About Closing Costs And Fees

To save yourself money, research lenders before settling on a refi

loan. Request loan quotes that include information on closing costs and

fees. The APR will include the interest rate, closing costs, and any

annual fees. But be sure to also ask about early payment or any other fees.

Be aware of fees or closing costs that are included as part of the

principle. These are often labeled as “zero down” loans, but in reality you

are paying for those fees throughout the loan.

With loan quotes, know that even the fees are negotiable. You can ask

for them to be removed or eliminated. Some fees, such as the early

payment fee, are only removed if you pay an additional amount at closing.

Select Low Fee Terms

While you are researching financing companies, also take a look at how

they structure their loans. Often the lowest rates, such as interest

only or balloon payment loans, have the highest fees.

Select terms that are more favorable for low fees, such as fixed or

adjustable rates. Adjustable rates are usually the lowest costing loans

with some risk of increasing future rates.

Other Ways To Cash Out Your Equity

If you are simply refinancing to cash out part of your equity, consider

applying for different types of credit to save on fees. Second

mortgages and lines of credit have much lower closing costs than refinancing

your total mortgage. They can also be held for a shorter period, which

also saves you money.

While low fees may be your goal, be open to better financing options.

By comparing the APR, you may find that average fees can yield better

rates that will save you money. The longer you keep your loan, the more

important low rates will be.

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How to Avoid Home Improvement Fraud

Jul 13 2020 Published by under Uncategorized

When it comes to home construction, there are thousands of general contractors to choose from. The best way to narrow down the reputable contractors from the not-so-reputable ones is to do your research, ask the right questions, demand proof of credentials, and choose a contractor that works specifically in the field you need. For example, if you need roof replacement, choose a licensed roofing contractor rather than a home remodeling contractor. A vague job description can mean they specialize in a wide array of construction projects. Instead, you want a contractor who operates their business with an acute focus on roof repair and replacement.

One of the biggest problems in the home construction industry are contractor scams. It is critical to always beware of sneaky home improvement scams because they are very common. They can easily cost a homeowner thousands of dollars if they fall victim to the dishonesties. Fortunately, anyone can avoid becoming a victim of home improvement scams with the proper knowledge and attitude. Continue reading to learn some important information about identifying these kinds of scams, protecting yourself from false loans, and who to turn to if you have a bad experience with an unethical contractor.

Signs That a Contractor is Trying to Swindle You:

– They knock door-to-door and offer their business.

– They come to your door and offer you discounts for referring other clients.

– They tell you they can give you a deal because they happen to have excess materials leftover from another job.

– They give ultimatums or pressure you into making an immediate decision.

– They only accept cash payments and/or request that you pay all fees upfront.

– They know a lender and recommend that you borrow money from them.

– They tell you to get the required building permits for the work.

– They tell you that your property’s work is going to be a “demonstration.”

– They offer a lifetime warranty or improbable long-term guarantee.

– You cannot find their business number or name listed in any local directories.

Even just one of these signs is an indication that you are not working with a responsible or experienced contractor. Furthermore, you must beware of a similar scam with loans. Home improvement loan cons are just as common and detrimental. This can lead to you unknowingly signing a home equity loan with incredibly high interest rates, points, and fees. And since the contractor has already been paid by this loan, they can lose interest in the work and fail to do a good job; or worse, not complete the work at all.

How to Report a Bad Experience

If you have a bad experience like this with a contractor, first try to work it out with them. After any phone conversations, mail a certified letter to them, and in it, request a receipt. Then keep copies of all records. This paper trail is your record that the company or contractor received your letter. If this does not work, you still have other options.

You can to report them to certain industry organizations, and possibly earn some sort of recompense. This includes the state attorney general, the local consumer protection office, the local home builders association, the local media’s “call for action” lines, and various dispute resolution programs in your town.

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