fter all the hurricanes your insurance goes up once or twice a year after you buy. Unfortunately your income did not go up with everything else. You are now in a pickle. Your house does not appraise out for you to refinance or sell without it costing you money. You will have the prepayment penalty fee plus either the real estate selling fee or refinancing closing costs.

There are many Mortgage Brokers / loan officers that do not educate the borrowers well enough to warn

1% Percent – 2% Percent – 3% Percent

4 CLOSURE

I am sure that you have heard and seen all the ads from TV, radio, newspapers, to your overstuffed mail box. Those ads that say you will get a 1% interest rate on your mortgage and you will only pay this small amount. Yes rates were low and the real estate market was on the rise and people were making hundreds of thousands of dollars flipping property and oh yes to help it all go crazy it seemed that all the banks and lenders were just giving away mortgages to anyone no matter their situation. Bam!!! Surprise!!! The balloon burst.

And now foreclosure is flying off the roof.
WHY?
Here is just 1 reason for this article.
That 1% percent rate.

The people qualified for that low rate and got that low payment. Well it does NOT stay at 1%. There are many programs from many lenders that offered it. Some have that rate for only one month and then it adjusts every month. Well our rates have gone up and so has their unstable rate. Some lenders had that rate for 3 months, and if you were lucky you had it for a year. With the way the real estate market was climbing a lot of people figured they could refinance and cash in or sell and still profit before the rate got too high.

For many that is not happening. The market has slowed down a great deal. Many homes are not valued at what the people bought them for. Most of the loans that come with that 1% have a prepayment penalty.

Which generally is that if they sell early or try to refinance it will cost them maybe up to 6% of the loan amount.

This and some of these other factors is why so many are going into foreclosure. First the mortgage payment went up. Another surprise after they buy they find their taxes have gone up a lot from when they bought the house a year ago. (Mine more than doubled 2 months after I bought it). Generally like Florida after all the hurricanes your insurance goes up once or twice a year after you buy. Unfortunately your income did not go up with everything else. You are now in a pickle. Your house does not appraise out for you to refinance or sell without it costing you money. You will have the prepayment penalty fee plus either the real estate selling fee or refinancing closing costs.

There are many Mortgage Brokers / loan officers that do not educate the borrowers well enough to warn t

nks and lenders were just giving away mortgages to anyone no matter their situation. Bam!!! Surprise!!! The balloon burst.

And now foreclosure is flying off the roof.
WHY?
Here is just 1 reason for this article.
That 1% percent rate.

The people qualified for that low rate and got that low payment. Well it does NOT stay at 1%. There are many programs from many lenders that offered it. Some have that rate for only one month and then it adjusts every month. Well our rates have gone up and so has their unstable rate. Some lenders had that rate for 3 months, and if you were lucky you had it for a year. With the way the real estate market was climbing a lot of people figured they could refinance and cash in or sell and still profit before the rate got too high.

For many that is not happening. The market has slowed down a great deal. Many homes are not valued at what the people bought them for. Most of the loans that come with that 1% have a prepayment penalty.

Which generally is that if they sell early or try to refinance it will cost them maybe up to 6% of the loan amount.

This and some of these other factors is why so many are going into foreclosure. First the mortgage payment went up. Another surprise after they buy they find their taxes have gone up a lot from when they bought the house a year ago. (Mine more than doubled 2 months after I bought it). Generally like Florida after all the hurricanes your insurance goes up once or twice a year after you buy. Unfortunately your income did not go up with everything else. You are now in a pickle. Your house does not appraise out for you to refinance or sell without it costing you money. You will have the prepayment penalty fee plus either the real estate selling fee or refinancing closing costs.

There are many Mortgage Brokers / loan officers that do not educate the borrowers well enough to warn

onth. Well our rates have gone up and so has their unstable rate. Some lenders had that rate for 3 months, and if you were lucky you had it for a year. With the way the real estate market was climbing a lot of people figured they could refinance and cash in or sell and still profit before the rate got too high.

For many that is not happening. The market has slowed down a great deal. Many homes are not valued at what the people bought them for. Most of the loans that come with that 1% have a prepayment penalty.

Which generally is that if they sell early or try to refinance it will cost them maybe up to 6% of the loan amount.

This and some of these other factors is why so many are going into foreclosure. First the mortgage payment went up. Another surprise after they buy they find their taxes have gone up a lot from when they bought the house a year ago. (Mine more than doubled 2 months after I bought it). Generally like Florida after all the hurricanes your insurance goes up once or twice a year after you buy. Unfortunately your income did not go up with everything else. You are now in a pickle. Your house does not appraise out for you to refinance or sell without it costing you money. You will have the prepayment penalty fee plus either the real estate selling fee or refinancing closing costs.

There are many Mortgage Brokers / loan officers that do not educate the borrowers well enough to warn

ome with that 1% have a prepayment penalty.

Which generally is that if they sell early or try to refinance it will cost them maybe up to 6% of the loan amount.

This and some of these other factors is why so many are going into foreclosure. First the mortgage payment went up. Another surprise after they buy they find their taxes have gone up a lot from when they bought the house a year ago. (Mine more than doubled 2 months after I bought it). Generally like Florida after all the hurricanes your insurance goes up once or twice a year after you buy. Unfortunately your income did not go up with everything else. You are now in a pickle. Your house does not appraise out for you to refinance or sell without it costing you money. You will have the prepayment penalty fee plus either the real estate selling fee or refinancing closing costs.

There are many Mortgage Brokers / loan officers that do not educate the borrowers well enough to warn

fter all the hurricanes your insurance goes up once or twice a year after you buy. Unfortunately your income did not go up with everything else. You are now in a pickle. Your house does not appraise out for you to refinance or sell without it costing you money. You will have the prepayment penalty fee plus either the real estate selling fee or refinancing closing costs.

There are many Mortgage Brokers / loan officers that do not educate the borrowers well enough to warn them of all the pitfalls that can happen to you if you choose that type of loan. They only push them on the low monthly payment and that their house will go up in value. Don’t let this happen to you. Get educated on each program. It is your life and your money. Try to prepare for the future.

You may visit my site to view my books at : http://www.saveonmortgageimprovecredit.com/