Mortgage Refinancing

I had a very bad experience with a mortgage company that I had contacted to refinance a 12.75 percent home mortgage that I had taken out in 1980. I was told they could refinance for me at 8.5 percent when I went to them in 1989. I thought this was a very good idea, so I agreed to go with them. I was very surprised that my house payments did not got down, but actually went up! Then to make matters worse, my payments did not include the taxes on the property, so I received a bill for those a few months after the refinancing. At that point, I took the paperwork to a real estate attorney and found out that my actual refinanced rate was in excess of 16 percent interest. My credit rating, by the way, when I refinanced was excellent. There was no excuse for this except deceit and greed. I was under the impression that mortgage companies were closely regulated by state and federal laws and they would not say one thing and then do another. I was wrong. I ended up having to sell the house to get out of the situation and hire an attorney and go after them for fraud and illegal lending practices. My advice: Never close on any mortgage without a reputable real estate attorney to review the papers first.

Submitted by iVillager--ameads2000

Learn more about refinancing and mortgages at our Homebuyers Center. Then share your thoughts on our message boards.

If you have a money mistake of your own that you'd like to share please send it in to us at: moneylife@mail.ivillage.com.

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