Are you considering mortgage refinancing and want to shave a hundred bucks (or more) off your mortgage payment? Well, you’re in luck… today’s post will show you how to do just that. The techniques that follow save the average homeowner $100 per month, that’s $1200 per year in unnecessary mortgage interest.
1. Before you do anything else, check your credit reports for errors. You don’t have to pay to get your credit report, and most of those “free credit report” websites are only free if you sign up for their credit monitoring service. Little known fact: several years ago Congress passed a law stating that each of the three credit reporting agencies have to give you a free credit report once per year. These credit agencies maintain a website at Annual Credit Report where you can download all three of your credit reports for free. They’re still going to try and sell you your credit score, but you don’t need it. If you find errors on your credit reports you’ll need to dispute them before proceeding to step 2.
2. Find the right mortgage lender. This is where most homeowners blow it. You might think that shopping for a new mortgage is like shopping for a new car or kitchen appliance, but it’s not. Also, if you’re thinking about refinancing with your Bank forget it. Check out this post entitled Should Banks do Mortgages if you have any doubts. Banks are off the table and if you want the lowest mortgage rate possible you’ll need to avoid the “elender” websites of the world also. Check out this post to find out How to Shop for a Mortgage Broker When Refinancing.
3. Learn everything you can about Yield Spread Premium. This is the single reason most homeowners overpay for their mortgage loans. In fact, according to the Secretary of Housing and Urban Development will cost homeowners sixteen billion dollars unnecessarily this year alone. Don’t be a victim of the mortgage industry’s greed…check out this post on Yield Spread Premium.
4. Once you’ve found the right person to arrange your next mortgage take action to protect yourself during the transaction. Start by locking in your mortgage rate the right way. Here’s how to guarantee your mortgage broker locks your mortgage rate correctly: Locking in Your Mortgage Rate.
5. Next, here’s what you need to know to keep your mortgage broker honest. Find out How to Read Your HUD-1.
6. The last step in mortgage refinancing is the closing. You’ll need to keep an eye out for Mortgage Junk Fees.
There you have it! How to lower your mortgage payment and put $1,200 per year back into your pocket in six easy steps. If you’d like to learn more about saving cash when refinancing your home check out my free Underground Mortgage Videos. When you register you’ll even get a list of mortgage brokers in your area that don’t take Yield Spread Premium on your loan.
Here’s a sample of what you get with my free Underground Mortgage Videos. This module is about your mortgage lender’s dirty little secrets…
Register today for free access without downloading anything to your computer’s hard drive.
My name is Rob Regehr and I’m a personal finance writer with a chip on my shoulder for banks and brokers that take advantage of my friends and neighbors.
