Waiting for the Lowest Refinance Mortgage Rates Could Cost You Thousands

If you’ve been waiting for the lowest refinance mortgage rates instead of refinancing your higher rate mortgage loan you could be losing out on thousands of dollars. Refinance mortgage rates from companies like Amerisave are next to impossible to predict so if you’re spending time trying to game the market there are other more tangible ways to save money. Here are several tips to help you get the lowest refinance mortgage rates from the best mortgage lenders without overpaying closing costs on your next home loan.

Lowest Refinance Mortgage Rates Aren’t Necessarily The Best Deal

Did you know the home loan with the lowest mortgage rates isn’t necessarily going to save you the most money? In fact, many loans quoting the lowest refinance mortgage rates wind up costing you a lot more at closing making it difficult, if not impossible to recoup your out-of-pocket expenses.

How good a deal you’re getting when mortgage refinancing depends not on getting the lowest refinance mortgage rates, but how much you’re paying for the loan origination fee and other closing costs. The reason fees are so important on your mortgage refi is that you have to recoup these out-of-pocket expenses before you’re going to benefit from a lower payment amount. Most people keep their home loans for four or five years before refinancing again; if you haven’t broken even recouping the closing costs on your last home loan you’re throwing money out the window.

Getting back to timing the market, if you’re paying your existing home loan at five percent or more waiting for mortgage rates to dip below 3.75%, you’re also throwing money way. By taking advantage of today’s refinance mortgage rates and avoiding lender fees you could cut as much as $200 or more a month from your payments. Over the course of a year that adds up and who wouldn’t want an extra $200 a month in their family’s budget?

How to Avoid Unnecessary Lender Fees

One of the most common mortgage mistakes is focusing only on getting the lowest refinance mortgage rates at the cost of fees. Some homeowners even fork over discount points at closing, trying to get a better deal.

This is almost always a bad idea in today’s market because it only lengthens the amount of time it takes to break even recouping your expenses.

Ask For Lender Concessions When Refinancing

Did you know that all the closing cost mortgage lenders charge are negotiable and vary from one lender to the next? Don’t be afraid to haggle and ask your lender to credit the overage to get a better deal. If you’re considering a Wells Fargo refinance and they’re not willing to negotiate simply take your business somewhere else. Keep in mind that no fee refinance offers aren’t necessarily going to be the best deals either as you’re always trading lender fees for higher refinance mortgage rates.