According to Kirk Haverkamp at Mortgage Loan.com, most homeowners in the United States are making a crucial mistake when refinancing their home loans. By neglecting to shop around, they’re passing up the best refinance rates available for convenience. Many surveyed even called mortgage rate shopping a waste of time.
The monthly mortgage payment is the biggest expense in most homeowner’s budgets, but the majority of them did little or no comparison shopping when choosing a mortgage. Fewer than one-third chose their mortgage lender on the basis of personal research into interest rates and fees, according to a new survey by ING Direct. About half said they never considered more than one lender, with the vast majority saying they based their choice either on an existing banking relationship or the recommendations of others.
http://www.mortgageloan.com/survey-few-shop-around-mortgages-8653
I would take shopping around a step further than the author goes in this article. Instead of shopping around for the best refinance companies looking for the best refinance rates, focus your energy on finding the right person to arrange your next loan.
Find a good broker and you’ll not only get the lowest refinance rates available you’ll be able to avoid the unnecessary markup that drives up your monthly payments and lender junk fees. The more you pay at closing for your next home loan the longer it’s going to take you to realize any benefit from the lower interest rate because you have to recoup your mortgage refinancing expenses first.
You can learn more about minimizing closing costs, avoiding markup, and getting the best refinance rates available by checking out my free Underground Mortgage Refinancing Videos.
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.
