I’m sure you’ve heard about the ‘magic trick’ of refinancing your mortgage.
For some home owners, it may be the right way to go.
But the big banks whispering in your ear about extra cash each month don’t want you to know about the years you’ve tacked on still indebted to them.
Don’t fall for their scheme to profit off of your hard-earned money.
Let me show you how to save your home, and your wallet, from crooked banks who would take it all away.
In a process called ‘churning,’ big banks would fold you over and over again like butter to squeeze out every cent.
They convince homeowners with honey-sweet words like “financial freedom” and “extended time,” but they’re just coercing you into losing more money.
Mortgage refinancing (done right) can help homeowners stretched too thin after payday has come and gone by allowing them to take advantage of lower interest rates than when they entered the contract.
But doing this over and over again can be more harmful than helpful.
Lenders will offer better and better deals to force you into more transactions with them.
While you think you’re getting a break on your monthly bills, they’re actually racking up thousands of dollars in fees from you.
I’m sure you’re familiar with pushy advertising.
Walking through the mall, you can’t go about your shopping without being asked to try a new fragrance or trendy product.
Door-to-door solicitors will invade your privacy at home to sell a new roof or insurance policy.
You’d think you could finally get a break from the bank, who you’re paying dutifully every month for the next 30 years (or more).
Sadly, it isn’t so.
Ginnie Mae, a government-backed housing authority, has recently looked into the practice of churning, and the results they found will make you want to burn the logo off your checkbook.
Banks and lenders were found to convince borrowers to refinance their home even when it was clear they wouldn’t benefit financially from it.
I don’t know about you, but I would be downright furious if I found out I’d been coerced into overpaying back my loan for years and years to come.
But don’t worry.
Now that I’ve told you about this shady practice, you can protect the investment in your home from selfish bankers.
New policies guarding borrowers against heinous practices like churning prevent big banks from treating hard-working Americans like products on an assembly line.
Next time you walk into the bank, bring a healthy amount of skepticism with you. Don’t get swindled by the Establishment into their greedy little games.