Get The Best Mortgage Rates Today

As current mortgage rates rise you’ll find the competition for your loan heating up. The problem is that banks and mortgage lenders start pitching gimmicks to stand out from the competition. There’s nothing sexy about mortgage loans, so it’s important to recognize that most lenders are simply selling snake oil. Here are several tips to help you get the best mortgage rates today without falling for lender gimmicks.

Mortgage Rates Today

It’s no secret that mortgage rates today are higher than they were this time last year. Higher rates mean lenders are closing fewer loans and start making far-fetched claims and promotions to attract borrowers. Many lenders offer reduced closing costs or offer to lock your mortgage rates for free.

Truth be told, most of the fees your lender is so generously offering to waive are simply junk fees that you shouldn’t be paying in the first place. All the major lenders are guilty of this including Bank of America and Wells Fargo.

Smaller lenders might not offer the same discounts or make outlandish claims; however, they all seem to be resorting to some form of nonsense to win your business.

How To Shop For The Best Mortgage Rates

When shopping for the best deal for your next home loan it’s important to focus on the interest rate AND the fees you’re being charged to get that rate. If you jump for $500 off your origination fee or a so-called “relationship discount” you’re missing out on the deal you could be getting.

Your lender could be offering you a discounted closing but if the overall mortgage rates and fees are higher than what a community credit union is offering those discounts are worthless.

Here’s a Discount If We Screw Up Your Home Loan

One of the worst “discounts” I’ve seen being offered is reducing fees if the mortgage lender screws up. Do you really want to choose a lender that’s offering a discount for not getting your home loan done right the first time? How much consolation are reduced fees for a boatload of stress? Not to mention if you lose your interested rate and wind up with a higher payment.

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5 Tricks You Need to Know For Lower Home Refinance Rates

There’s a lot of talk in the news that rising refinance rates might derail our economy’s recovery. Those working in the mortgage business point to uber-low refinance rates as the reason things were improving for most Americans. Have you been on the fence about refinancing only to watch refinance rates skyrocket towards five percent? Here’s 5 easy tricks you need to know to save money locking in your lowest payment before the opportunity slips away.

Rising Refinance Rates Are Good Motivation

You might think rising refinance rates would put the brakes on demand for refinancing. I’m noticing a different reaction, people I know that haven’t already done so are clamoring to refinance before the opportunity is gone.

No one figured refinance rates would take off, people counted on interest rates falling or staying where they are. Now, seemingly overnight, mortgage rates have shot up and given many homeowners the necessary kick in the pants to do something about refinancing their home loans.

If you’re in the market to refinance you might wonder how the lender fees you pay affect the deal you’re getting. In fact, your mortgage settlement fees make or break your mortgage, especially now that refinance rates are above four percent. Here are 5 smart moves to make now and get a better deal than your neighbors, despite rising refinance rates.

Continue reading 5 Tricks You Need to Know For Lower Home Refinance Rates

How Do I Refinance My Mortgage With Bad Credit?

Are you looking to refinance your home mortgage but have poor credit? Can you still lower your payment with today’s best mortgage lenders? Here are several tips to help you improve your credit and get approved if you’re struggling with the question who will refinance my mortgage loan with bad credit.

Who Will Refinance My Mortgage?

While it’s true that banks and lenders have tightened their approval standards you can still get approved for good mortgage refinance rates with a few dings on your credit report. The bad news is that you might not qualify for the lowest refinance rates you see lenders advertising without paying hefty discount points.

If you’re struggling with bad credit the question you might want to be asking is not be who will refinance my mortgage but should I refinance my mortgage…

How Much Will Refinancing With Poor Credit Cost?

Depending how bad your credit score is you might find that your interest rate will be 1.5 percent higher than if you had good credit on the same mortgage loan. This assumes the bank will approve you and doesn’t take into consideration any discount points you could be required to pay.

Discount points are a fee normally paid for lowering your refinance rates; however, some lenders require borrowers with poor credit to pay points as a condition of loan approval.

One discount point is the equivalent of one percent of your mortgage loan amount. You may have the option of rolling points into your mortgage balance depending on the lender.

What is Considered a Bad Credit Score?

If you haven’t seen your credit score lately you can get a free TransUnion credit score with no strings attached from CreditKarma.com. Be careful with those other free credit score websites as they usually want you to pay for credit monitoring service to gain access to your credit scores.

Any credit score below 650 is generally considered poor by most lenders. Keep in mind that you have three credit scores, one from Equifax, Experian and TransUnion. Mortgage lenders use your middle credit score so if your scores are 630, 650 and 705 your middle credit score is 650.

Factors that affect your credit score include how much home equity you have and how much utilization of your credit cards you have. If you max out your credit cards your score is going to suffer; most financial advisors recommend keeping your balances below 30% of your limit.

Depending on the reasons for having less than desirable credit you could have trouble getting your home refinance approved. If you have serious delinquencies (more than 90 days late) or a bankruptcy your home refinance might not be an option. In this case you might be eligible for a loan modification with your mortgage servicer. Contact whomever you’re sending your monthly payments about your modification options.

Depending on the severity of your bad credit rating you may be able to find one of today’s best mortgage lenders to approve your application, you just won’t qualify for the lowest home refinance rates being advertised.

Should I Refinance My Mortgage?

This is a question you’ll need to answer regardless of your credit score. Depending on how much you have to pay closing on your new home loan it might not be worthwhile refinancing. This is especially true if the lender is requiring discount points because of your credit score.

You can figure out if mortgage refinancing is worthwhile by calculating your approximate break-even point for recouping mortgage lender fees. You can do this using a simple mortgage calculator like this one to calculate your new payment amount based on the bad credit refinance rates you’re being offered.

Simple Mortgage Calculator

Loan Amount: Years: Interest Rate:

Annual Taxes: Annual Insurance:

Monthly Payment =

Once you’ve calculated your new payment amount, your monthly savings (if any) is the difference between the new payment and the old one. If you’re not saving anything by refinancing you might need to reevaluate your reasons for refinancing before going forward. There are still good reasons for refinancing when your payment is going up like switching to a fixed-rate mortgage from an adjustable one.

You can approximate how long it’s going to take to reach your break-even point by dividing your monthly savings by the amount it’s going to cost you to close including any discount points.

If you’re able to break even recouping in a reasonable amount of time than refinancing probably makes sense in your situation.

Shop for the Lowest Refinance Rates & Fees

Refinance rate shopping is even more important for homeowners with poor credit. Refinance rates and fees vary widely from one lender to the next, especially when your credit score is an issue.

While it doesn’t cost anything to shop around from today’s best mortgage lenders there are steps you can take to protect your credit score. You also need to make sure you’re comparing apples-to-apples when it comes to mortgage lender fees.

The problem with home refinance rate shopping is that you need to have lenders run your credit to get accurate quotes. When too many lenders run your credit your score gets dinged for hard inquires. The trick is to limit all of your refinance quotes to a 14 day period and you’ll only get one lender inquiry on your credit report.

Make sure you’re using page two of the Good Faith Estimate to compare fees like the loan origination fee from a variety of banks, credit unions and direct lenders. The mortgage origination fee is important because you could pay as little as $400 or as much as 1.5 percent depending on how much time you invest in comparison shopping.

Also make sure the quotes you’re getting are for identical mortgage programs. If you don’t do this it’s not possible to make an apples-to-apples comparison of lender fees.

How to Fix Your Credit Score

Unfortunately there’s no quick fix for a bad credit score. You can boost your credit score by improving your credit utilization or by correcting errors in your credit reports. The law requires that you get free access to your credit report every year from each of the tree credit reporting agencies: TransUnion, Equifax and Experian. You can order your credit reports from the official website AnnualCreditReport.com.

Be careful with sites like Myfico.com that want you to enroll in their credit monitoring service to gain access to your credit reports and scores. You can get free access to your TransUnion score with no strings attached at CreditKarma.com.

Once you’ve got your credit reports from AnnualCreditReport.com you’ll want to check for errors on your payment history and accounts listed on the report. If you find mistakes each reporting agency has a site for filing disputes online. The process of disputing errors on your credit reports is slow and can take anywhere from 60 to 90 days.

Most importantly make sure you’re paying your bills on time. One thing you can do to improve your score relatively quickly is pay down the balances on your credit cards below 30% of your limit.

Sometimes the only way to fix your credit is to let time do the heavy lifting for you. Eventually negative information drops off your credit reports so as long as you’re making all of your payments on time your score will fix itself…eventually.

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You can learn more about paying less for your next home loan from today’s best mortgage lenders by checking out my free Underground Mortgage Videos.

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How To Get Your Lowest Refinance Mortgage Rates

Are you considering taking out a new home loan with today’s low refinance mortgage rates? When deciding if it’s a good idea you’ll want consider the cost of taking out a new mortgage loan. Every new home loan has fees including settlement charges, points and possibly mortgage insurance depending on the program and your loan-to-value ratio. Here are several tips to help you decide if taking out a new home loan is worthwhile and how to get the lowest refinance mortgage rates if you decide to go forward.

Should You Take Advantage of Today’s Refinance Mortgage Rates?

The mortgage fees you pay closing on your new home loan make or break the deal you’re getting, especially when refinancing. If you’re not able to break-even recouping the out-of-pocket expenses from refinancing you’re losing money no matter how low your refinance mortgage rates.

The less you pay at closing the better…that’s why comparison shopping refinance mortgage rates and fees is so important. One of the most common home loan mistakes is focusing only on refinance mortgage rates at the expense of fees. Overpaying the loan origination fee or agreeing to pay discount points for a lower interest rate is a recipe for losing money.

Should I Refinance My Mortgage?

Before you start shopping for the best mortgage lenders you want to decide if refinancing is even worthwhile. You can do this by approximating your break-even point using a simple mortgage calculator like this one.

Simple Mortgage Calculator

Loan Amount: Years: Mortgage Rate:

Annual Taxes: Annual Insurance:

Monthly Payment =

The mortgage calculator gives you an idea of how much your payment will go down based on current refinance mortgage rates. Once you’ve got an idea of what the payment will be divide your total estimated closing costs by the amount you’re saving each month. This tells you approximately the number of months it’s going to recoup your out-of-pocket expenses from your monthly savings. If this time-frame for breaking even is acceptable for you than paying for a new home loan makes sense.

Remember that if you’re considering a cash-out refinance that you may be required to purchase mortgage insurance which can add hundreds of dollars to your payment. The same is true if your loan-to-value ratio is less than 80%. Mortgage insurance can quickly turn attractive refinance mortgage rates into a losing proposition.

How to Shop for the Lowest Mortgage Rates & Fees

Comparison shopping refinance mortgage rates and fees from different lenders can be a confusing and frustrating process. In addition to comparing mortgage rates from today’s best mortgage lenders you need to shop closing costs. The trick to comparison shopping is to only compare lender fees from identical mortgage programs. If you’re comparing fees from different programs across different lenders you’re not making an apples-to-apples comparison.

What mortgage fees can you expect to pay? One of the most important is the loan origination fee. This is paid to the person or company arranging your home loan. Many brokers will tell you that one percent is standard for the mortgage origination fee. I’ve reviewed community credit unions that charge as little as $400 for their loan origination fee which is one of the reasons comparison shopping is so important.

Other closing costs to consider include mortgage processing, underwriting fees, attorney fees, title insurance, recording fees and pro-rated taxes and insurance. Fortunately, the new Good Faith Estimate makes it easy to comparison shop mortgage lender fees across identical programs.

How to Use the Good Faith Estimate to Compare Mortgage Fees

The government recently revamped the Good Faith Estimate making it much more useful for refinance rate shoppers. First, when shopping refinance mortgage rates make sure the quotes you’re requesting do not include discount points. You’ll find that lenders like to quote refinance mortgage rates based on paying discount points because it makes their interest rates seem more attractive.

Agreeing to pay discount points used to make sense when home loans came with double digit interest rates in the 1980s. These days refinance mortgage rates are at historically low levels making points a waste of money. If you’re curious how paying this fee to the lender affects your payments there is a table on page three of your Good Faith Estimate; however, most homeowners do not benefit from paying points.

Remember, the less you pay closing on your new home loan, the more you’ll benefit from current refinance mortgage rates. Start with the loan origination fee fount on page two, box 1a. Next, look at any yield spread premium in box 2a. This is a credit generated by accepting higher than market refinance mortgage rates that is used to pay your origination fee and other closing costs. If you’re taking this lender credit you’re not getting the lowest interest rate possible and your monthly payments will be higher.

The next section on your Good Faith Estimate that you want to focus on is box b on page two. This includes lender specific fees, including third party fees that you can shop around for. You’ll find the mortgage fees vary from one lender to the next so don’t be afraid to haggle with loan officers over the fees you find in box b.

What to do if Lender’s Aren’t Quoting You Their Lowest Refinance Rates

If you find the quotes you’re getting are higher than what lenders are advertising the likely culprit assuming that your LTV ratio is better than 80% is your credit score.
Have you been to AnnualCreditReport.com this year to review your credit reports for errors? Mistakes in your credit reports are like a boat anchor for your credit score, keeping you from the lowest interest rates from today’s best mortgage companies.

AnnualCreditReport.com won’t give you a credit score unless you pay for one. CreditKarma.com is an excellent alternative to those fake free credit score sites that bait you into paying for their credit monitoring services.

If you find mistakes in your credit files you’ll need to dispute the errors with each credit bureau (Trans Union, Equifax, & Experian) and allow enough time for the correction to be reflected in your credit score.

Strategies for Refinance Mortgage Rate Shoppping

You already know that comparing refinance rates and fees across identical mortgage programs is the only way to make an apples-to-apples comparison of lender fees. It’s also important to make sure the quotes you’re requesting are accurate and don’t negatively affect your credit score.

When a mortgage lender runs your credit you get a hard inquiry on your credit report which lowers your credit score. Some people refuse to provide their Social Security Number when shopping for refinance mortgage rates because they think they’re protecting their credit score.

If you do this you’re getting the loan officer’s best guess on what refinance rate you’ll qualify. The only way to get an accurate Good Faith Estimate for comparison shopping fees is to give up your Social Security number. The trick is to limit all of your quotes to a 14-day period. If you’ll do this you’ll only get dinged for one hard lender inquiry on your credit report and will protect your credit score as much as possible.

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You can learn more about getting the lowest refinance mortgage rates & fees from today’s best mortgage lenders by checking out my free Underground Mortgage Videos.

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Here’s a quick sample to help you avoid paying lender junk fees by shopping smartly…

6 Tips For Getting The Best Mortgage Rates

Everyone wants the best mortgage rates for their next home loan; however, the approach most people take results in overpaying thousands of dollars at closing. In fact, the fees you pay closing on your next mortgage make or break the deal you’re getting. Here are six tips for getting the best mortgage refinance rates while paying as little as possible closing on your next home mortgage loan.

How to Comparison Shop for the Best Mortgage Rates

The process of refinancing your home isn’t much different from when you took out your first mortgage. Before you can make an informed decision on which lender’s offer is best there are a few decisions you need to make. Is your goal to improve your monthly cash flow by reducing your payment? Would you rather build equity in your home and payoff that mortgage faster? Deciding what your goals are for refinancing before you start shopping for the best mortgage rates will make the process infinitely easier.

6 Steps to Lower Mortgage Refinance Rates

Have you decided whether you want to lower your payments or to pay off that mortgage loan faster? If so you’re almost ready to begin shopping for a lender and their best refinance rates.

  1. Pick a Mortgage Program & Stick With It
  2. The most important decision you can make when refinancing your home loan is which mortgage program you want/need. Do you need a fixed mortgage rate with low payments? Choosing a 30-year fixed rate loan will meet your needs. Want to pay off the loan quickly with a reasonable payment amount? Consider an Adjustable Rate Mortgage with a 15 year term. Is your credit iffy and you need an FHA streamline refinance?

    Once you’ve decided which program works best for you stick to it and don’t let a fast-talking loan officer quote mortgage refinance rates from programs that you’re not interested.

  3. Check Your Credit Reports First
  4. If you’ve already started shopping for mortgage refinance rates and you’re finding the quotes you get are higher than what you’re seeing advertised, the likely culprit is your credit score. Before you do anything else visit the government-mandated website AnnualCreditReport.com and carefully check your credit reports for mistakes. If you find errors you’ll need to dispute with each credit bureau and allow enough time for the correction to be reflected in your credit score.

    If your credit score isn’t what it should be the quickest way to boost it is by paying down the balances on your credit cards below 30% of your limit. Finally, never miss a payment…especially on your mortgage.

  5. Shop From Multiple Lenders Online
  6. Getting the best mortgage rates for your next home loan means shopping around from a variety of lenders. Also, make sure you’re requesting mortgage refinance quotes the right way. If you want accurate quotes you have to give the loan officer your Social Security number. Many homeowners refuse to provide their SSN when shopping for the best refinance rates because they think they’re protecting their credit score.

    If you shop this way you’re relying on that loan officer’s best guess as to what your interest rate will be which is almost always a waste of time. The trick to protecting your credit score while shopping for mortgage refinance rates is to limit your quotes to a two week (14-day period). If you do this you’ll only get dinged for one lender inquiry on your credit report.

    Also, make sure the quotes you receive are zero discount point quotes. If you’d like to see whether paying discount points is worthwhile there is a table on page three of your Good Faith Estimate; however, you should always start with a zero point quote when shopping for mortgage refinance rates.

  7. Compare Mortgage Refinance Rates & Fees
  8. One of the most common mistakes is focusing on getting the best mortgage rates at the expense of fees. The new Good Faith Estimate makes it very easy to comparison shop fees. Focus on page two, paying close attention to the loan origination fee and Yield Spread Premium. If you’re not already familiar Yield Spread Premium, this is a credit generated by accepting higher than market interest rates. You can find this credit, if any, listed on page 2, section A, item 2.

    The test of how good of a deal you’re getting when refinancing your home comes from how long it takes to break even recouping your out-of-pocket expenses. The quicker you break even the more benefit you’re getting from low mortgage refinance rates. Conversely, the more you pay at closing the longer it’s going to take you to break even reducing your benefit from refinancing.

    You can approximate your break-even point by adding up all your out-of-pocket expenses and dividing by the amount that your payment is going down each month. If you’re unsure what your new payment will be based on the mortgage refinance rates you’re being quoted you can use a simple mortgage calculator like this one to determine the new payment amount.

    Simple Mortgage Calculator

    Loan Amount: Years: Rate:

    Annual Taxes: Annual Insurance:

    Monthly Payment =

  9. Decide How Will You Pay For Your Next Home Loan
  10. Every home loan has fees and what you’ll need to decide is how you’re going to pay your closing costs. If you want the best mortgage rates available you’ll have to pay out-of-pocket to close.

    If you accept higher mortgage refinance rates to cover your loan origination fee and other closing costs you’re going to have a higher payment and eventually overpay for those fees. Unless you’re strapped for cash it’s almost always better to pay the mortgage origination fee and closing costs yourself.

  11. Use The Good Faith Estimate & HUD-1 Statement

  12. The Good Faith Estimate is an excellent tool for shopping for the best mortgage rates. Keep in mind however that it is only an estimate. The final word on your mortgage refinance rates and fees is found on your HUD-1 Settlement Statement. If it’s not in writing on your HUD-1 you didn’t get what the loan officer promised.

    It’s a good idea to reconcile your Good Faith Estimate with the HUD-1 Settlement Statement before closing. The same is true of your mortgage refinance rate lock. If you haven’t locked in your best mortgage rates in writing you haven’t locked.

Investing a few hours in careful comparison shopping of mortgage refinance rates and fees will save you thousands of dollars at closing and help you avoid common mistakes that tripped up your neighbors.

Click Here For More Details…

You can learn more about getting the best mortgage rates without paying lender markup or junk fees by checking out my free Underground Mortgage Videos.

httpv://www.youtube.com/watch?v=be9md0A0_2c
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Here’s a quick sample to help you get the best mortgage refinance rates without overpaying at closing…