If you’re waiting for the best refinance rates for your mortgage refi, you can’t get much better than this week’s rate quotes. According to CNBC.com mortgage interest rates are at their lowest levels of the year and continue to free fall. According this article interest rates have fallen for six straight weeks and haven’t been this low since December of last year.
Fixed mortgage rates hit the lowest point of the year for the third straight week. Freddie Mac said Thursday the average rate on the 30-year loan fell to 4.60 percent from 4.61 percent. That’s the lowest point since mid-December.
Keep in mind that the interest rates quoted by many lenders don’t include points that you may be required to pay to qualify. It is the fees you pay for loan origination and closing costs that actually determine how good of a deal you’re getting. Overpaying at closing means it’s going to take that much longer to get any benefit from your lender’s best refinance rates.
How much should you pay at closing on your mortgage refi? The loan origination fee should not cost you more than one percent of the amount you’re refinancing… that’s perfectly reasonable compensation for the mortgage broker. If you’re finding a rate lock fee, application fee, processing fee or a broker courier fee on your Good Faith Estimate or HUD-1 Settlement Statement you probably want to find a different person to arrange your refi.
Getting the best deal when mortgage refinancing in today’s economy is less about interest rate shopping and more about finding the right person to arrange your next home loan. Find the right broker and you won’t have to worry about unwanted markup or lender junk fees, it really is that simple.