Keeping Your Information Safe during the Mortgage Process 

When going through the mortgage process, you usually find yourself giving out a lot of sensitive personal information. In today’s digital climate, it’s important to keep your information secure, especially when part of the dealings happen online. Here are five things to take extra special care with during the process to avoid identity theft or fraud.

Avoid sending personal documents via emails. Emails with PDFs or other document attachments containing your personal information can be intercepted, making it easy for hackers to access your sensitive details. Instead, use secure document-sharing platforms recommended by your lender.

Two-factor authentication. Using 2FA wherever possible adds an extra layer of security. This way, even if someone has your password, they won’t be able to access your accounts without a second form of verification, like a text message code or authentication app.

Use complex and unique passwords. A strong password typically includes a mix of letters, numbers and special characters. Avoid using easily guessed passwords like “password123” or anything related to your personal information.

Think twice about emails you receive. Scammers often pose as lenders or financial institutions, sending emails that look legitimate. Before clicking any links, double-check the sender’s email address and look for any suspicious signs, such as spelling errors or unexpected attachments.

Avoid clicking on unknown links. Scammers may send links that can lead to malicious websites designed to steal your information. When in doubt, go directly to the institution’s official website.

What Is a Buydown and How Might It Help You?

If you’re looking to reduce your mortgage interest rate, you may be interested in what’s known as a buydown on your mortgage. It’s a financing strategy that allows you to reduce your mortgage interest rate by paying extra money up front.

This can make monthly payments more manageable, particularly in the early years of a loan as well as during the entire term.

There are two types of buydowns: a permanent buydown and a temporary buydown. With a permanent buydown, the interest rate is reduced for the life of the loan, lowering monthly payments throughout. In a temporary buydown, the rate is lowered for the first few years.

Although it is commonly paid for by the buyer or lender – as they will be the ones benefiting – the approach can also sometimes be paid for by the seller to make the home more affordable to buyers.

Buydown mortgages can be especially helpful when interest rates are high, as they provide an opportunity to lower borrowing costs.

However, it is important to weigh the up-front costs of purchasing points against the long-term savings: a buydown may be right for those planning to stay in their homes for several years and looking to stabilize their monthly payments, but it’s crucial to make sure these costs don’t put you in a difficult financial position from the get-go.

This newsletter and any information contained herein are intended for general informational purposes only and should not be construed as legal, financial or medical advice. The publisher takes great efforts to ensure the accuracy of information contained in this newsletter. However, we will not be responsible at any time for any errors or omissions or any damages, howsoever caused, that result from its use. Seek competent professional advice and/or legal counsel with respect to any matter discussed or published in this newsletter.