The decision to refinance your mortgage will likely save you thousands
of dollars. Because of falling interest rates, those who purchased
their homes at a higher rate have the opportunity to take advantage of a
lower monthly payment. Furthermore, refinancing makes it possible to
convert an adjustable rate mortgage to a fixed rate. There are many lenders
that offer attractive refi packages. With this said, it is important to
obtain quotes from multiple lenders.
Benefits of Comparing Mortgage Refi Lenders
Comparing lender offers is not mandatory. In fact, some homeowners skip
this step. Nonetheless, comparing and contrasting different loan offers
make it possible to obtain the best deal. Lenders offer varying rates
and terms. Some mortgage lenders are only concerned about the bottom
line. Hence, they may not offer the best rate.
Homebuyers who compare lender offers can easily detect potentially
fraudulent companies. For example, if three lenders remit a quote with a
refi rate of about 5%, and one lender offers a refi loan at 7%, the
oddball lender may be attempting to take advantage of you. This occurs
commonly among those with a poor credit history.
Tips for Comparing Refi Lenders
Many homeowners choose to refinance using their current mortgage
lender. There are advantages and disadvantages to this option. If you
maintained a good payment history, your existing lender will want to keep you
as a client. This gives you the power to negotiate. Refinancing
involves closing fees. If using your existing lender, it may be possible to
have some fees waived, which will reduce closing costs.
On the other hand, if you did not establish a good relationship with
your current lender, it may be wise to seek another lender. You may
contact banks or credit unions and inquire about their refinancing loans.
Its suggested that homeowners obtain quotes from at least four
different refi lenders. Of course, requesting quotes and completing
applications for different lenders takes time. However, the internet makes
comparing refi offers quick and easy. Simply complete an online quote request
with a mortgage broker. Upon reviewing your information, the broker
will filter through refi loans and locate the best lenders for you.
View our list of recommended lenders for the best mortgage deal online.
Carrie Reeder owns ABC Loan Guide, an online source for information on the
lowest interest rate home refinance lenders and home equity loan companies online.
