The decision to refinance your mortgage will likely save you thousands of dollars. Because of falling interest rates, those who purchased their homes at a higher rate have the opportunity to take advantage of a lower monthly payment. Furthermore, refinancing makes it possible to convert an adjustable rate mortgage to a fixed rate. There are many lenders that offer attractive refi packages. With this said, it is important to obtain quotes from multiple lenders.
Benefits of Comparing Mortgage Refi Lenders
Comparing lender offers is not mandatory. In fact, some homeowners skip this step. Nonetheless, comparing and contrasting different loan offers make it possible to obtain the best deal. Lenders offer varying rates and terms. Some mortgage lenders are only concerned about the bottom line. Hence, they may not offer the best rate.
Homebuyers who compare lender offers can easily detect potentially fraudulent companies. For example, if three lenders remit a quote with a refi rate of about 5%, and one lender offers a refi loan at 7%, the oddball lender may be attempting to take advantage of you. This occurs commonly among those with a poor credit history.
Tips for Comparing Refi Lenders
Many homeowners choose to refinance using their current mortgage lender. There are advantages and disadvantages to this option. If you maintained a good payment history, your existing lender will want to keep you as a client. This gives you the power to negotiate. Refinancing involves closing fees. If using your existing lender, it may be possible to have some fees waived, which will reduce closing costs.
On the other hand, if you did not establish a good relationship with your current lender, it may be wise to seek another lender. You may contact banks or credit unions and inquire about their refinancing loans.
It’s suggested that homeowners obtain quotes from at least four different refi lenders. Of course, requesting quotes and completing applications for different lenders takes time. However, the internet makes comparing refi offers quick and easy. Simply complete an online quote request with a mortgage broker. Upon reviewing your information, the broker will filter through refi loans and locate the best lenders for you.