According to a recent article by FinWeb, if you’re carrying a first and a second mortgage or have a home equity line of credit that you’re paying on, mortgage refinancing can save you a bundle by consolidating your home loans with one low-interest rate. Mortgage rates hit a five-month low last week so there is no better time than the present if you’ve procrastinated about your mortgage refi.
Home equity loan refinancing is the process of paying off your current home equity loan with another at a lower rate. There is no real way to lower an interest rate without modifying the loan, and refinancing is the most common form of loan modification. You should only refinance, though, if the benefits of the lower rate are greater than the hassle and penalties imposed for the modification.
If you’re considering any mortgage refi and want the best refinance rates for your next home loan an important step you’ll need to take to avoid overpaying is to lower the loan origination fee and lender fees. Fees decide how good of a deal you’re getting on your mortgage refi because you have to recoup these expenses before you start realizing any savings from the new home loan. There are a number of junk fees including unnecessary markup of your interest rate that can turn mortgage refinancing into a bad deal that you need to be aware of. Recent changes to the y laws protecting homeowners from predatory lending practices limit the ways a broker can be compensated for arranging your home loan and taking advantage of the new laws will save you thousands of dollars. Unfortunately the new laws do not apply to everyone in every mortgage refinancing situation so it’s important to do you homework first to avoid paying too much at closing.
You can learn more about avoiding unnecessary markup and junk fees on your next mortgage refi by checking out my free Underground Mortgage Refinancing Videos. These videos have been viewed by over 350,000 homeowners just like you and save the average homeowner $1200 per year. No joke.