Sen. Charles Schumer says the recent drop in mortgage rates means scammers may try to take advantage of homeowners looking to save money in a recession by refinancing.
The recent dip in mortgage rates makes refinancing more attractive, the Democrat says, but he is warning New Yorkers that unscrupulous brokers may try to snare homeowners with deals packed with hidden fees and costs.
At a press conference in New York, the senator says “there’s no free lunch, and there’s no free refinanced mortgage.”
While it is a good time for many New Yorkers to refinance their mortgages to lower fixed rates with reputable firms, the senator is urging New Yorkers to be wary of the sort of too-good-to-be-true radio ads and flyers.
(Source: 1010WINS / AP)
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One Response
He is correct that there are unscrupulous lenders out to take advantage of people. He simply is wrong though that there is no way to do a no cost refinance. There does not have to be hidden costs and fees. A lender getting paid a high enough commission by the bank can use his commission to cover a borrowers costs thereby creating a win win situation. The borrower gets a lower rate and the lender gets a commission albeit a lower one, but a commission nonetheless. I am an honest lender that does this practice all the time.
I hate when politicians open their mouth about things they know nothing of.