Desk with pink accents and letters, some of which may have been from fake vendors.

BEWARE OF VENDORS IMPERSONATING LENDERS

This is a quick reminder that some vendors, particularly sellers of “mortgage protection insurance” or other insurance products, often reach out to new homebuyers shortly after close.

These vendors often see the name of the funding mortgage bank on county records and then reach out to homebuyers, pretending to be affiliated with that mortgage bank.

Unsuspecting homebuyers, believing that the vendors are actually affiliated with the mortgage bank, get confused by these marketing efforts and either respond to them or ask us about them.

These offers are never even close to competitive, however, and nobody should ever work with a vendor that employs deceptive marketing practices in any case.

Anyway – if you or any of your clients ever see these offers, we always recommend ignoring them (or advising your clients to do so).

Finally – I want to make clear again that these vendors get their info from County Records, as we have never sold and will never sell anyone’s data.

PAYING OFF HELOC = CASH OUT

This is a reminder that paying off a Home Equity Line of Credit (HELOC) with refinance proceeds is considered “cash out” unless the HELOC was used solely to help finance a purchase (as opposed to having been taken out after the purchase).

This matters significantly nowadays b/c the “hit” or the increase in interest rate for “cash out” is higher than ever. “Cash out” can increase an interest rate by as much as 0.75% in some cases.

I recently blogged about the high cost of “cash out” here.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167

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