If you’re considering mortgage refinancing you might be tempted to skip rate shopping because interest rates are so low. While it’s true mortgage rates are at historically low levels if you neglect shopping around you could wind up overpaying thousands of dollars in lender fees and markup. What’s the best way to shop around for mortgage refinancing? Should you trust your bank’s Annual Percentage Rate (APR) when mortgage rate shopping or is there a better way? Here’s an article on HSH.com with tips for shopping to help you avoid lender junk fees:
With mortgage rates at all-time lows, U.S. homeowners are refinancing in droves. If you’re among them, you already know that it’s important to comparison shop; you shouldn’t just work with the first lender you meet. But do you know how to comparison shop, whether it’s for a conventional loan, FHA mortgage or otherwise? Most homeowners don’t.
One of the most common mortgage mistakes when shopping for refinance rates is to rely on the Annual Percentage Rate. Annual Percentage Rate is flawed and will not give you an apples-to-apples comparison of loan offers from different lenders; if you want the lowest rates without paying unnecessary fees there are better ways to shop.
You can learn more about mortgage refinancing without overpaying at closing by checking out my free Underground Mortgage Videos.