You’re looking for a house but you have questions regarding home financing? What are points? What mortgage will best fit my needs?
Or maybe you already own a home and have questions regarding your mortgage payment. Am I being overcharged for taxes and insurance? Is the payment on my adjustable rate mortgage being adjusted properly?
Where can you get unbiased advice regarding these questions? Mortgage consultants could be the answer.
Mortgage consultants offer a variety of mortgage related services to consumers in need of information and assistance. Reputable consultants (usually industry veterans) operate independently of any financial institution; so information provided is unbiased and services rendered generally are in the consumer’s best interest.
The lion’s share of consultants’ business comes from escrow account analysis and auditing of adjustable rate mortgages. The Department of Housing and Urban Development estimates that escrow account overcharging has cost homeowners billions of dollars and that a significant number of homeowners are due a refund and/or reduction in their monthly escrow payment.
Resolving these mortgage payment issues is the mainstay of business for Mortgage Payment Analysis Inc. of Katy, Texas. Company president Katherine Kosicki feels that consumers should be diligent in reconciling their mortgage statements.
“Don’t rely upon your mortgage company to properly administer your mortgage. It is your largest investment and you must police your own account. And when it comes to your mortgage don’t take anything for granted,” Kosicki said.
Frequent transferring of mortgage loans and unintentional payment calculation errors may result in borrowers overpaying after their mortgage payment is adjusted. The miscalculation of adjustable mortgage payments amounts to thousands of dollars in overcharges to borrowers, surveys have calculated.
Mortgage consultants can conduct an audit of your adjustable mortgage loan to determine if you have been overcharged. According to Kosicki the industry average for ARM audit refunds is $1,200.
But can’t you do these things yourself? Certainly. Mortgage servicers are required to provide documentation to those who wish to audit their escrow accounts and adjustable rate mortgage loans.
A consultant’s fee will cut into any potential refund amount. Some charge a flat up-front fee while others charge a percentage of the refund. However, the industry experience of a mortgage consultant could prove helpful in expediting the procedure and interpreting the numbers.
Consultants also will help draft a refund letter to be sent to the mortgage servicer. A mortgage consultant can answer most mortgage questions brought to his or her attention, often at no charge.
Common topics of discussion include explanation of the different mortgage programs available and refinancing options. An in-depth analysis of a consumer’s mortgage options usually warrants a fee, but consumers should not expect to pay more than $50.
Many consultants publish literature, conduct workshops and offer their speaking services before local community groups. Industry participants might also benefit from the expertise that consultants have to offer.
Consultants can be a useful source of information and assistance, but you can receive reliable information from other sources as well. A strong lender relationship can prove invaluable when seeking answers and resolving discrepancies.
And if you are having trouble collecting refunds on overcharged amounts, you might be able to receive assistance from the state attorney general’s office.
