You have an adjustable rate mortgage, and now you need to refinance to fixed interest rate before your payment goes through the roof. Most homeowners visit their banks, fill out an application, and pay much more than they should. Banks prefer that you that you know very little about the mortgage business; this is how they make money. Refinancing your mortgage can save you money, give you better terms, and let you consolidate debt or borrow against equity in your home. As a homeowner you need to understand what you are getting into and shop around for the best deal.
A common mistake many homeowners make is simply walking into a bank. Make sure you have reviewed your current mortgage before you start shopping around. You need to know the interest rate, payoff amount, how much equity you have, and what your credit looks like before getting started. After reviewing this information you can decide if refinancing the mortgage is the right thing to do. As a homeowner it is your responsibility to make an informed decision; your lender simply wants to sell a mortgage, they don’t always have your best interests at heart.
When shopping for a mortgage loan you need to understand the jargon being used as well as the terms of the loan. Our free guide will help you understand the jargon and teach you about the industry. Obtaining a mortgage is a large commitment on our part. Doing your homework and shopping around is the first step you can take to finding the best loan for your home and your family. To learn more about finding the best mortgage loan available sign up for our free guide: “Five Things You Need to Know Before Refinancing Your Mortgage.”
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.
