Los Angeles Refinance Mortgages

Written by Tara Peris
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Every year in Los Angeles, refinance mortgages dupe scores of unwitting home owners out of their properties. Although refinancing, when executed properly, is an excellent financial strategy for capitalizing on a first mortgage, many people do not fully understand what it entails. As a result, they are vulnerable to fraud and manipulation.

There are plenty of things you should know about the process of refinancing a home. The most important one, however, is quite simple. When you refinance your home or take out a home equity loan, you are putting up your property as collateral for a loan. This means that if you cannot make the payments on your new loan, you will run the risk of losing your house.

Be Prepared

The advantages of refinancing are well known, but the actual financial process involved seems to be poorly understood. As a result, in recent years, there have been reports of growing loan fraud within the Los Angeles real estate community. In particular, shady lenders have been known to prey upon the elderly and the financially disadvantaged, making them promises on which they'll never deliver. More often than not, these promises involve large loans with low monthly payments and the "guarantee" of no additional fees. Needless to say, this is not how things pan out.

This is a great shame, as it fosters mistrust and doubt within a very honorable profession. There are hundreds of legitimate lenders out there who are committed to helping people pursue their dreams of home ownership. The key is to find a trustworthy, reputable lending institution and to research the terms of your new agreement thoroughly. Do not let yourself be a victim of fraud. Do your homework and learn about your lender and your contract before taking the plunge.

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