If you’ve ever been mortgage rate shopping you might wonder why the best refinance rates can change so much. Equally confusing is why the fees charged by brokers for loan origination and lender closing costs can vary so much. (Here’s a tip: mortgage origination fees and closing costs are negotiable.) Check out this article from HSH.com for a crash course on what moves mortgage refinance rates:
The questions are simple enough: What’s going on with mortgage rates? What makes them rise, or fall? Is it the Fed? The economy? Inflation? The banks? The President? Fannie Mae or Freddie Mac? Is it a secret conspiracy? The answer is that rates are moved by a number of related factors, and believe it or not, you — Joe or Jane Consumer — are one of those factors.
In today’s market getting the best refinance rates for your next home loan is easy; however, avoiding unnecessary fees and markup can get tricky. One of the more common mortgage mistakes is overpaying your broker for loan origination or falling for one of those no fee refinance offers. The problem with no fee mortgage refinancing is that you’re giving up the lowest refinance rates to have the lender cover your closing costs. This always results in a higher monthly payment amount.
You can learn more about getting the lowest refinance rates for your next home loan without paying hidden junk fees by checking out my free Underground Mortgage Refinancing Videos.
My name is Rob Regehr and I’m a personal finance writer with a chip on my shoulder for banks and brokers that take advantage of my friends and neighbors.
