If you’re shopping for today’s best refinance rates you might wonder why interest rates vary so much from one lender to the next. Shopping for the lowest refinance rates using a Good Faith Estimate can be frustrating and does not give you an apples-to-apples comparison of loan offers. Here’s an article from TheTruthAboutMortgages.com that helps explain why mortgage rates vary so much:
Mortgages are complicated business, and there certainly isn’t a one-size-fits-all approach. Every loan scenario is different, and must be priced accordingly to factor in mortgage default risk (risk-based pricing).
If you’ve decide to go forward with your mortgage refi rather than trying to compare rate quotes using the Good Faith Estimate it makes more sense to focus on finding the right person to arrange your mortgage refi. Getting the best refinance rates in today’s economy is not difficult; however, the trick is to avoid paying unnecessary fees and markup.
The more you pay at closing when mortgage refinancing, the longer it’s going to take to recoup your expenses from the lower payment amount. Pay junk fees at closing and it’s going to take longer to break even before gaining any benefit from refinancing.
You can learn more about mortgage refinancing without paying lender junk fees or markup by checking out my free Underground Mortgage Videos.