Right now, you are probably being inundated with refinance offers. The Federal Reserve has dropped the interest rate to zero, and banks are rushing to offer you a chance to save money. Or are they?

The banks are spending a ton of money on advertising to let you know they are trying to save you money during these uncertain times. Banks are necessary, but they are not service organizations. They are businesses. Banks are not in the business of saving you money.

If you save money, it costs the bank money! I want to share with you what’s really going on. I do not want you to be taken advantage of because you don’t understand what the bank is really offering with these refinance loans.

Here’s the truth, friends: There is an additional loan involved in these refinance offers!

If you are offered a refinance loan, look at what you owe now versus what you would owe at closing. That difference is the fee for refinancing. A refinance should cost you no more than $5,000-7,000 in closing fees.

Here is what you do with that closing fee: Roll the fee into the loan. Do not pay the closing out of pocket. Take that closing fee–again, it should be no more than $7,000–and when you make your first mortgage payment, add that money to your first payment.

By prepaying, you will knock out months of payments and save yourself from potentially paying 200% interest in the long run.

If a bank is offering you a chance to save money, look at it closely for hidden fees. The interest rates you are quoted are not the interest rate you will pay.

There are going to be a lot of offers coming at you. Don’t try to get your information from the person trying to sell you the refinance.

Contact me. All initial consultations are free. You can also download the first chapter of my book, The P.I.L.L. Method, free of charge right now. Read my book, give us a call, let’s run the numbers so you can know the truth about these loans.

Banks are not in the business of saving you money, but I am.

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