If you’ve decide to go ahead with your mortgage refi you might be confused by some of the rate quotes you see. Just because you see 4.5% published by a lender or broker doesn’t automatically mean you’ll get that rate from the lender. That’s why shopping around before mortgage refinancing is so important to avoid unnecessary fees and markup. According to the blog at TheTruthAbout Mortgages.com there are a number of factors that decide what the best refinance rate for you will be once everything is said and done.
The thing with mortgage rates is that they vary greatly depending on a number of market forces and borrower-specific factors. That’s why it’s impossible to just throw a rate out there like 2.99% or 3.99%. Sure, a handful of borrowers may qualify for a mortgage rate like that, but there will be many others who qualify at a higher (or even lower) rate, assuming they even get approved.
As the article points out risk determines what the best refinance rates will be for you. Risk factors include your credit history, your loan-to-value ratio, region of the country, and the term length you are applying.
It’s true that many of these factors are beyond your control; however, there are common mortgage mistakes that you can control on your mortgage refi. These include paying unnecessary markup and junk fees when mortgage refinancing. One of the main factors determining if you’re getting a good deal on your mortgage refi is the fees and closing costs you pay because you have to recoup these expenses before realizing any benefit from your new home loan.
The more you pay when refinancing, the longer it takes to recoup your expenses. You can learn more about avoiding unnecessary markup and junk fees on your next home loan by checking out my free Underground Mortgage Refinancing Videos.