As the interest rates started to climb higher, refinance scams started to surge. Refinance fraud has become far more common with the onset of the pandemic, and to avoid them, it would be best to first understand what most scammers are after. Refinance scams often are made in order to obtain information rather than cash. With your personal information, including your name, date of birth, and social security number, scammers can then steal your identity or sell it to others.
Here are some tips to avoid falling for those “too good to be true” deals?
- An offer for an incredibly low refinance rate that you can obtain simply by filling out a form with personal information, or by wiring a small fee to get your file started.
- Some more ambitious frauds have requested the home’s title in exchange for financial assistance.
- Read the fine print. Are those letters offering low rates “truly” from your lender or your mortgage loan originators? Perhaps there’s a disclaimer somewhere to shows they are NOT the actual mortgage company.
- Confirm the fees and costs associated with the rates proposed. Usually you will find the rates were from weeks or months in the past which means that those advertised rates are no longer available. Be aware of suspicious fees that seem excessive or out of the ordinary or fees associated with refinancing,
- To avoid scams, it would firstly be best to avoid interacting with any company you don’t recognize, and to clear it with your current lender before proceeding with any refinance offers.
- Determine if the lender is legitimate by doing some research into their company and look for reviews.
As always I am always happy to chat and you can feel free contact me to verify the validity of an offer.
