If you’re considering talking out a new mortgage to refinance your existing home loan, the Internet is an excellent tool to shop around for the best loan rate. You can use the Internet to easily compare mortgage rates without having your credit pulled.
Most online applications ask that you only describe your credit and do not ask for a Social Security Number. Most sites provide you an offer and then contact you asking to run your credit report.
Because you’re not providing a Social Security Number there is no risk to comparison shopping online and you can quickly compare refinance quotes from a variety of mortgage lenders. There are several websites that allow you to submit your application for preapproval to a variety of lenders and then come back with the top for quotes based on the information you provide.
If you complete the preapproval process using a form like the Guide to Lenders form found on this site you could easily have favorable quotes from several lenders in a matter of minutes. There are a few steps you’ll want to take to ensure that the quotes provided are not lemons:
II. Pay close attention to your closing costs. Junk fees are those that serve no purpose and go right into your Mortgage Broker’s pocket. Broker courier fees are an example of junk fees loan originators like to slip into your Good Faith Estimate and Settlement Statement. The free video tutorial on this website features a module on avoiding junk fees.
III. Understand the terms of the mortgage you choose. If your loan has an adjustable mortgage rate find out when it will be adjusted and what caps are included in the contract. Caps are safety features to prevent your mortgage rate and payment from going up too wildly when the lender adjusts your loan. Paying attention at this stage in the game will save you many a sleepless night later on.
Taking advantage of the net to shop and compare loan offers can help you find the most competitive mortgage rates if you go about it correctly. You can learn more about avoiding junk fees and the unnecessary markup of your interest rate by registering for the free videos using the links provided at the top of this page. Don’t let a pushy mortgage broker back you into a loan that isn’t in your best interest. Register today and you’ll be on your way to saving thousands of dollars on your next home loan.
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.
