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Review 9/30/2009
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I was looking to refinance my home mortgage, due to recent salary cuts and a reduction in my work hours. A credit score check was run by another lender, which found my credit to be very good. I was contacted by a number of lenders, including Mr. Joe Bienko of Berkley Capital Corp. Mr. Bienko stated to me, when we spoke, that he could offer me a 4.75% , 30 year fixed rate on my mortgage balance of $235K. He stated that my only costs would be: (1) a home appraisal fee and (2) a sum of money, to be held in escrow, to cover my property tax and homeowners insurance costs. As I had already spoken with several other lenders, I was aware that 4.75% was a very competitive loan rate for a 30 year fixed loan.I specifically asked Mr. Bienko, on September 23, 2009, how, he is able to offer such a low interest rate. I told him that I had spoke with several other lenders and when I mentioned the 4.75% fixed rate, they remarked that they didn't know how this could be done, as lenders also need to earn a living. Mr. Bienko stated that Berkley Cap has "Platinum Status" with CitiMortgage, which allows them to offer this competitive rate. He sent me the refinance application and disclosure. When I examined the document, I was disappointed to learn that Mr. Bianko had mislead me, by neglecting to mention the following: In addition to the costs for the home assessment and escrow, my loan amount would change, from $235K to $241,584.39, to also cover his closing costs, in the amount of $5,610.54 Therefore, I would end up saving $170.70 per month, while taking on an additional $6K in loan debt. When I called Mr. Bienko back, to ask him about this previously unmentioned increase in my mortgage balance and upfront loan processing fee, he never returned my call. Be careful when dealing with Berkley Capital Corp. Make sure you read the loan document very carefully, so that you do not get mislead by them.
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