If you missed out on mortgage refinancing when rates where at records lows the opportunities from last year are back. If you decide to take advantage of record low refinance rates beware the fees many lenders are charging. One of the most common mortgage mistakes is focusing on getting the lowest refinance rates without paying attention to fees. Here’s an article on HSH.com about the new mortgage refinancing opportunities from the latest drop in interest rates:
For those of you who missed out refinancing last year when mortgage rates fell to similar levels now have a renewed opportunity for savings. A well-executed refinance can lower your interest rate, lower your monthly payment and help you pay off your home more quickly.
The reason the loan origination fee and closing costs are so important on your mortgage refi is that you’ll have to recoup these out-of-pocket expenses before realizing any benefit from your new home loan. The more the pay closing on your refi the longer it’s going to take you to break even.
Most homeowners don’t realize that the origination fee and closing costs vary from one lender and broker to the next. Haggling to pay less can save you hundreds if not a thousand dollars or more at closing. You can learn more about paying less for your next mortgage refinance by checking out my free Underground Mortgage Videos.