Common Mortgage Loan Fraud Schemes

Despite what you might think, even when you use a mortgage broker you can be still the victim of mortgage loan fraud. To be honest, most people have never heard of mortgage loan fraud schemes but they very much exist and they are not going away any time soon either. This is the world we live in; there are fraudsters and scammers around every corner and people always spot an opportunity to make a quick buck. However, do you know the most common fraud schemes in mortgage loans? Read on to find out more.


Very few people will disclose a kickback and these kickbacks occur more often than you might think. So, how does the kickback work? Well, when a buyer agrees to buy a home and the seller hands over a sum of money and it is not a part of the home purchase contract that is technically fraud. The money could be for some repairs or something like that but is it really legit? No, and if you do not disclose this information to the mortgage lender it’s considered fraud. That is something you have to be extremely wary of even if you’re using mortgage brokers Melbourne.

Second Mortgages

A Silent second mortgage is something which is often seen but also one which is considered a fraud. A silent second mortgage is basically the buyer borrowing money, such as the required down payment, from the actual seller of the property. In basic terms, the seller now has a silent second mortgage and it is an unrecorded mortgage in a sense. However, if the mortgage lender does not know about this loan it’s a fraud committed by both parties. That can be easily mistaken as a genuine case of buying but it’s not.

Falsely Stating Occupancy

If someone is buying a home and getting a mortgage but not going to be the actual occupants then lenders will usually increase the interest rates. Why do they do this? It’s because they don’t know who will be living in the home and since they have lent the owners the money they are the ones who have taken all the risk. However, some buyers can state they are the ones who will reside in the home only for them to buy the home and rent it out to someone else. If your intentions are this but you claim otherwise it’s a fraud. A mortgage broker will tell you the same thing and it’s vital for you to be honest when applying for a mortgage otherwise its fraud. You could get into a lot of trouble if you’re found out.

Be Wary Of Fraud

Whether you have been thinking about certain practices during your mortgage process or the other party may be guilty, you have to be very careful of fraud. While you might be an interested buyer if you do commit an act of fraud somewhere or you have helped to commit such a crime you are at risk. You really need to be extremely cautious when dealing with fraud because it can cause untold damage to your way of life. Talk to mortgage brokers Melbourne if you are worried about such a problem.

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Mortgage Rates

Finding the Best Mortgage Rates in 2017

Locating the best mortgage rates begins with determining which type of loan matches your situation. Focus on basic principles such as loan program types and terms, and then move to specifics such as lenders and mortgage broker details. You will notice simply by the advertised interest rates on many lender websites that mortgage rates will most likely vary depending on the loan product.

Loan Programs and Mortgage Rates

There is a strong connection between the type of loan you wish to pursue and the amount of interest you can pay on your mortgage. For example, the initial resolved rate on an adaptable rate mortgage (ARM) might be only 2.5%, but those conditions are only good for that initial time period. Depending upon the sort of ARM you get, it’s likely you have those interest levels for anywhere from 1-5 years. After that primary period expires, you’ll be required to pay the mortgage broker Melbourne rate at that current time. This is a risk that you take when you apply for an ARM, but it can save you money on interest if you know you will be stopping your loan contract (i.e. moving or offering) before that initial time frame has ended.

On the other hand, if you seek a typical 30-year set mortgage, your interest rates will generally always be greater than those of Hands, but you will know the amount you’ll be paying each month and do not have to be concerned about your repayments later fluctuating. The program can be best for your situation if it’s mysterious, or likely that you will be remaining for the reason that home for more than 5 years. If you have a sizable income cushion each month you might decide on a 15-12 months mortgage broker Melbourne, meaning that you get a lower interest rate, but can pay slightly higher monthly premiums because the cash are amortized over the 15-calendar year period.

Ensure that you research each option carefully and how it can benefit or put at risk your financial and living layout futures. It generally does not hurt to speak with a few professionals about your finances if you are uncertain of which option might be right for you.

Finding the Best Home loan Rate

Once you’ve made a decision which l mortgage broker Melbourne  program you want to pursue, it is time to take steps for the best one possible that will provide you with the lowest interest and least constraints or improvements (private mortgage insurance (PMI), fines on early repayments, points, handling charges, and even more).

  • Ask several lenders to discover the best interest they can give you on this program you have identified is most beneficial for you. Make sure that they include all extra fees (control or origination fees) in their estimates so there are no invisible surprises. Keep in mind we list current mortgage rates here daily on our blog from several of America’s top services.
  • Find out about conditions for locking in interest rates. Some lenders will increase your interest rates in conjunction with asking for an extended time frame with which to lock-in that rate. Other lenders will use a float-down methodology that enables you to re-lock your rates if the entire interest rates drop throughout your lock-in period. Just ensure that whatever lock-in span you consent to that it will work with your closing date (make an effort to give yourself a few days of deep breathing room).

Finding the best home mortgage rates commences with choosing a kind of home loan. From there it is time to move on to loan details, and find a lender who’ll offer you clear home elevators the mortgage up-front. Then it could be a chance to lock-in those rates and progress with your wish home purchase mortgage broker Melbourne. Click