Refinancing your home mortgage can save you thousands of dollars. With low interest rates and an ultra-competitive market there are excellent deals available. There are a number of mistakes that could rob you of any potential savings from refinancing. You need to do your homework and shop from a variety of mortgage lenders and brokers to avoid making these mistakes. Here are tips to help you find the best mortgage.
Compare a Variety of Mortgage Lenders and Brokers
Many homeowners neglect to comparison shop when applying for a mortgage; this can be a costly mistake. You need to compare a variety of lenders and brokers so you will know what fair rates, fees, and closing costs are. If you find a mortgage lender offering rates that do not make sense compared to other lenders, consider it a warning that the mortgage offer could be fraudulent.
When refinancing your mortgage consider your current mortgage lender as an option. If you have a good payment history with this lender they may be willing to refinance your mortgage with better terms and rates. Keep in mind that refinancing your mortgage is going to cost you money; closing costs are typically paid as an out-of-pocket expense. By staying with your current lender you may be able to avoid these closing costs and lender fees.
You should obtain quotes from at least four different mortgage lenders when shopping for a loan. Make sure you are requesting “no obligation quotes” when shopping for a mortgage. This will allow the lender to quote you an offer without accessing your credit.
To learn more about saving money and finding the best mortgage, register for our free mortgage guidebook: “Five Things You Need to Know Before Refinancing Your Mortgage.”