If you’re shopping for the best mortgage companies when refinancing your home loan there are several things you should know to avoid paying unnecessary fees and markup. Interest rates are at historic lows so even the best refinance companies are trying to boost their profits at your expense with junk charges. Here are several tips before you refi to help you find the best mortgage companies without overpaying one red cent for new home loan.
Best Mortgage Refinance Companies
How do you find the best mortgage companies when refinancing your home? Should you trust the Good Faith Estimate (GFE) companies like Amerisave give you when shopping for rate quotes? The problem with relying on your GFE is that while Truth-in-Lending laws require lenders to give you this documentation there are no standards for what fees they must include or even how the Annual Percentage Rate is calculated. This makes it nearly impossible to make an apples-to-apples comparison of the costs you’ll pay when mortgage refinancing.
A Better Way to Shop for the Best Mortgage Lenders
There is a better way to find the best mortgage companies without paying junk fees. Before signing with one of the so-called top mortgage lenders (see my Amerisave Reviews for one example) it makes sense to focus on finding the right person to arrange your home loan. Mortgage brokers not only have access to the best mortgage refinance rates but finding the right person to arrange your refi will help avoid overpaying.
What charges should you keep an eye out for once you’ve found a broker to arrange your refi with the best refinance companies? Beware any mortgage broker that quotes you a fee for locking your interest rate from any of the top mortgage lenders as none of them charge rate lock fees. (This is a sure sign that you’re dealing with a dishonest broker) Other junk fees include an application fee, loan processing fee, and mortgage broker courier fee. Carefully review your Good Faith Estimate and Hud-1 statement and don’t be afraid to question any of the charges you find in these documents.
All of Your Mortgage Closing Costs Are Negotiable
One of the most common mistakes when refinancing is neglecting to negotiate closing costs. All of the fees associated with closing are negotiable and vary widely among the best mortgage companies. Spend a little time haggling with your lender over fees and you can save yourself hundreds, even a thousand dollars at closing. Remember closing costs are cash out of your pocket; the less you pay in lender fees the faster you’ll break even recouping your out-of-pocket expenses and start benefiting from your lower payment amount.
As you can see there’s more to getting a good deal for your next home loan than simply finding the best mortgage refinance companies. People who focus only on getting the lowest refinance mortgage rates wind up paying unnecessary points or lender junk fees. Remember the fees you pay when refinancing make or break your home loan because you have to recoup your origination fee and closing costs before benefiting from today’s historically low mortgage rates.
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You can learn more about finding the best mortgage companies for your next refi without overpaying one red cent by checking out my free Underground Mortgage Videos.
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