If you’re shopping for the best refinance rates you might wonder how many rate quotes you should be comparing. When it comes to the most important financial decision facing your family, the more refinance rate shopping the better. One of the most common mortgage mistakes however, is focusing solely on rates, and not negotiating the origination fee and closing costs. Here’s an article on TheTruthAboutMortgage.com on how much mortgage rate shopping is enough:
When it comes to getting the best deal on your mortgage, you can never shop too much. Just like any other product you may comparison shop for, the more time you put in, the better deal you’ll probably receive.
I have to disagree with the author when it comes to relying on the Good Faith Estimate to compare fees. While Truth in Lending laws require the Good Faith Estimate, there is no standard from one lender to the next when it comes to disclosing fees. The Good Faith Estimates (GFE) you get from most lenders are little more than propaganda prepared by the marketing department to lure you into an overpriced home loan.
A far better choice for comparing fees on your mortgage refi is the HUD-1 Settlement Statement. Don’t be afraid to haggle with any fee you find in your home loan documents and keep a sharp eye out for junk like rate lock fees. Any broker/lender that insists you pay a fee for locking in your mortgage rate simply doesn’t deserve your business.
You can learn more about getting the lowest refinance rates without paying junk fees when mortgage refinancing by checking out my free Underground Mortgage Videos.