Anyone that tells you they know where mortgage refinancing rates are headed is probably trying to sell you an overpriced home loan. Interest rates are near their lowest levels of the year so now is a great time for your mortgage refi; however many homeowners focus on the wrong things and make common mortgage mistakes. This article by Dan Green at the Daily Mortgage Reports addresses shopping for the best refinance rates.
Shopping for mortgage rates would be easier if rates weren’t changing all the time.
Mortgage Rates Change All Day, Every Day
Mortgage bond prices– similar to stock prices — are random. They can’t be predicted with any sort of certainty, and they change from minute-to-minute.
In addition to shopping for the best refinance rates for your next home loan it’s really important to pay attention to fees and closing costs. Beware fast talking mortgage brokers that try to sell you on a no cost refinance in exchange for a higher interest rate and monthly payment. If you want the lowest mortgage rates you’re better off in the long run paying the loan origination fee yourself.
Another common mortgage mistake is overlooking closing costs. The fees you pay on your mortgage refi largely decide how good of a deal you’re getting because you’ll have to recoup these expenses before realizing any benefit from mortgage refinancing. The more junk fees you pay the longer it takes to recoup your expenses and the less you’ll benefit from that low refinance rate.
You can learn more about avoiding unnecessary markup and junk fees like the rate lock fee by checking out my free Underground Mortgage Refinancing Videos. These videos have been seen by over 300,000 homeowners just like you and save the average person $1200 a year.