If you’re shopping for the lowest refinance mortgage rates you might be disappointed to find the quotes you’re getting from companies like Amerisave are much higher than what lenders are advertising. Mortgage lenders use a bait-n-switch trick when advertising refinance mortgage rates; advertised rates are frequently based on a credit score of 780 or better. If your credit score is less than perfect your refinance mortgage rates will come in much higher; however, there are steps you can take to improve your quotes and save a lot of money in the process. Here are several tips to help you get better refinance mortgage rates for your next home loan without paying unnecessary fees or discount points.
Beware Deceptive Lender Tricks
Mortgage lenders manipulate their advertised refinance mortgage rates by using lofty credit scores or hiding discount points in the fine print.
Lenders will give you lower rates if you pay discount points up front…one point is one percent of your home loan amount paid at closing and typically lowers your refinance mortgage rates by .25 percent per point.
While it’s true that mortgage interest rates are near historically low levels you shouldn’t have to pay a fee to get them. Because interest rates are at such low levels lenders are doing everything they can to boost profit at your expense with junk fees and unnecessary discount points. Mortgage brokers are also guilty of fleecing your neighbors by overcharging their origination fee. The good news is that you don’t have to be a personal finance guru to avoid overpaying and benefit from today’s lowest refinance mortgage rates. You just have to find the right person to arrange your next home loan.
How to Get Better Refinance Mortgage Rates
Before you start shopping for a new home loan, start by checking your credit reports for mistakes and outdated information. Mistakes are very common and drag your credit score down like a boat anchor; you can check all three reports for free every year by visiting the website AnnualCreditReport.com.
Other steps you can take to make sure your credit score is as high as possible include paying down the balances on your credit cards and avoid applying for new accounts for at least 90 days before shopping for refinance mortgage rates. It goes without saying; however, make sure you’re paying all of your bills on time as it seems to take late payments forever to drop off your history. Once you’ve cleaned up your credit reports it’s a good idea to keep an eye on them throughout the year. If you’re a member of a credit union you may be able to take advantage of low-cost credit monitoring services that will do this for you.
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You can learn more about getting today’s best refinance mortgage rates without paying unnecessary discount points or lender junk fees by checking out my free Underground Mortgage Videos.
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