How to Choose the Best Mortgage Refinance Lender
In case you are planning to refinance your mortgage, then seeking out the best mortgage refinance lender is crucial now more than ever. Obviously, you desire to reduce your interest rates, monthly payments, and probably even the number of years that you will need to pay off your loan. This is very beneficial to you. Also, it is highly likely that the best refinance lender isn’t your current mortgage lender.
How To Find the Best Refinance Rate
If you fail to compare the rates from different lenders, then you can be greatly disadvantaged. The Consumer Financial Protection Bureau suggests that over three-quarters (77%) of borrowers usually apply to only one lender. Their research also shows that shopping a 30-year mortgage from different lenders can result in interest rates that vary by over half a percent. This can significantly help you to save a lot of money amounting to thousands of dollars in terms of your mortgage payments in only the first five years of your loan.
This is one of the main reasons why your current mortgage holder might not be your best option when it comes to refinancing. Most probably, you didn’t do some digging around for your first mortgage. Your main concern was getting approved and closing the loan, wasn’t it? However, you are now aware of how important it is to compare lenders and apply to multiple of them. In case you got the best loan package from your current lender, then you will finally be certain this time.
There is no need for presenting a number of written documents to get an official loan estimate from a lender. Often, you just have to provide some important details including your name and income, property address, Social Security number, an estimate of the value of your home in addition to the amount that you want to refinance. However, the more information that you provide, the more accurate the estimate that you will get.
A majority of lenders will charge a fee of about $20 to retrieve your credit report. After this, each lender will give you a standard loan estimate detailing the terms and costs of its mortgage refinance proposal.
There Are Currently A Lot More Mortgage Refinance Options Available Online
It is now easier than ever to shop mortgage rates. Considering the increased growth of unconventional mortgage lenders, the internet is a good place to start your search to find direct lenders as well as mortgage marketplaces.
After an initial online search, you can then widen searching to more conventional and local mortgage lenders.
Objective Advice Matters
Research done by Fannie Mae shows that the most sought after source of advice on home loans is the mortgage lenders themselves. Lenders are obviously useful, however- and this might be a huge understatement – lenders may not provide the most objective information when it comes to the products that they are offering.
Therefore, despite the fact that you have undergone the loan process before in the past, it is important to ensure that the time is right before seeking a refinance. You have to put into consideration everything that you need to do to maximize the savings on your refinance after which you can take the refinance process step by step.
When you shop multiple lenders, preferably three or more, you will be better placed than many other borrowers. Not only will you get a more suitable interest rate, but you will also benefit short-term and long-term savings. To be able to choose the best mortgage refinance package, compare side by side the loan estimates that you receive from every potential lender.
