If you’re in the market to buy a new home or refinance your existing home loan, interest rates are now at very attractive lows. Before you jump in with that mortgage refi you can save yourself a boatload of cash simply by fee shopping for a variety of lenders. What? Shop for fees and not the lowest refinance rates? This might sound counter-intuitive to some; however, the most common mortgage mistake come from not comparison shopping the origination fee and closing costs. Here’s an article on FoxBusiness.com with several tips before you refi on shopping for the best mortgage lender:
If today’s low mortgage rates and bargain-basement home prices have you eager to start shopping for a new home, it’s crucial to find a reliable mortgage lender who can help you find the best mortgage rates and help you understand the closing process. When you begin your search for a mortgage lender, your best bet is to ask friends and family members for recommendations. Then check those recommendations out for yourself. Mortgage loan originators must be registered or licensed, so a good starting point is the searchable database provided by the Nationwide Mortgage Licensing System, which contains many, but not all, licensed brokers.
One little-known fact of mortgage refinancing is that the loan origination fees and lender closing costs are negotiable and that closing costs are set by the lender and vary widely from one lender to the next. Simple negotiation and being a paid in your lender’s neck could literally save you thousands of dollars at closing.
Remember, your broker and mortgage lender are not your friends. These people are standing between you and saving thousands of dollars on your home loan. Show them no mercy and question everything; you’ll pay less closing on your mortgage refi. You can learn more about avoiding unnecessary fees and markup on your mortgage refinance by checking out my free Underground Mortgage Videos.