Over the past three years, low-interest rates led many homeowners to refinance their mortgages. In many cases, lenders have promoted the option of “skipping a payment” as an attractive benefit to homeowners. However, legal experts are warning that this so-called “benefit” could be part of an scheme to profit from unsuspecting borrowers.
Homeowners, particularly veterans, may be offered the ability to skip a payment or two during the refinancing process. However, they are often unaware of the long-term financial consequences. Lenders typically add the skipped payments back onto the loan, with interest, either at the end of the refinance process or at the loan’s maturity, effectively increasing the overall loan balance.
Consumer lending attorneys are calling attention to these practices. These may violate both state and federal laws, including Texas’ Deceptive Trade Practices Act and the United States’ Truth in Lending Act. These laws are designed to protect homeowners from deceptive financial practices.
One lender, Cardinal Financial Company, has been identified as employing these misleading tactics. Homeowners who feel they have been affected by these practices are encouraged to seek legal counsel to explore their rights and potential remedies under the law.
Read the full article here: https://www.dmagazine.com/sponsored/2022/06/hidden-illegal-fees-charged-by-lenders-who-are-refinancing-home-loans/
Contact Rogge Dunn and his team for assistance: https://roggedunngroup.com/contact