Here a some common red flags to watch out for when trying to determine whether the lender you're assessing is a good fit for your needs:
- Excessive Prepayment Penalties
- Inflated Interest that is not aligned with your credit score (yield-spread premium rip-off)
- Lenders that target Senior Citizens
- Claims that your bad credit doesn't matter
- Lenders that promise to refinance at a later date if your financial situation worsens
- Refinance deals that cost you more in the long term
- Lenders that rush you. There should never be any pressure. Take your time.
Always remember, when making important decisions pertaining to money, it is prudent to seek the advice of a professional financial advisor. The list above is an excellent starting point though, so please review it carefully.