If you’re considering new home loan it looks like mortgage refinancing rates will continue to fall this week. Dan Green of the Daily MortgageReport.com is predicting conforming home loan interest rates will continue their decline in the coming days. If you’ve been on the fence about mortgage refinancing now is the time to get the best refinance rates of the year, possibly even put some cash back in your pocket.
When you look at mortgage rate patterns over a long period of time, you notice that mortgage rates move in batches. For any significant chunk of time — weeks, months, or longer — mortgage rates are defined the arcs they follow. Rates don’t move sideways over said chunks of time. The move up or they move down. The pattern is called “trending”. Right now, we’re in a downward trend.
One of the most common mortgage mistakes people make when they see historically low-interest rates is ignoring fees like the loan origination fee and closing costs. Some homeowners jump on no cost refinance offers because they think they’re saving a few thousand dollars at closing without considering what taking the higher interest rate is doing to their monthly payments.
Other homeowners fall for junk fees like the rate lock fee, application fee, processing fees or mortgage broker courier fees. Did you know that the fees and closing costs you pay decide how good of a deal you’re getting on your mortgage refi because you’ll have to recoup these expenses before realizing any benefit from your lower payment amount?
Minimizing your closing costs by paying a reasonable loan origination fee (one percent is more than adequate) and avoiding unnecessary markup and junk fees will not only save you thousands of dollars at closing but shorten the amount of time it taxes to recoup the cash you’re paying to close. You can learn more about paying less for your next home loan while getting the best refinance rates for your mortgage refi by checking out my free Underground Mortgage Refinancing Videos.