| Finding a good lender to refinance your mortgage | | | | 3. Shop around and find several different lenders |
| can be almost as important a decision as the | | | | to refinance your mortgage |
| actual mortgage you choose. In order to make a | | | | The market for refinancing mortgages has |
| wise selection of a refinancing lender you should | | | | become so crowded and competitive that it is |
| do four things: | | | | fairly easy to find several lenders to compare. |
| 1. Know the objective of your mortgage | | | | You might use a broker. The newspaper and the |
| refinance | | | | yellow pages are also good places to start. If you |
| Do you want to lower your current interest rate? | | | | are comfortable negotiating the Internet, it is an |
| Generally, refinancing your mortgage can be | | | | excellent resource. There are many services |
| profitable if your current mortgage is 2% higher | | | | online which will perform a preliminary search for a |
| than the prevailing rates. Do you want to move | | | | lender. Your current mortgage lender should also |
| from an adjustable rate mortgage (ARM) to a | | | | be included in this group. |
| fixed rate mortgage? | | | | 4. Negotiate the mortgage refinance loan that |
| If interest rates are creeping up this may be a | | | | suits your needs |
| good idea. Do you want to shorten the term of | | | | Many times the compensation a lender makes on |
| your mortgage to accumulate value more quickly? | | | | refinancing a mortgage is dependent on the terms |
| Do you want to take cash out of your home's | | | | of the mortgage so it is up to you to make sure |
| equity? The mortgage refinance lender you pick | | | | that the loan received is the most advantageous |
| will want to know your reason for refinancing so | | | | for you. |
| that the appropriate mortgage product can be | | | | You might want to investigate mortgage |
| chosen. You will also want to be aware of your | | | | refinance lenders who offer no closing cost loans |
| credit score and the terms of your current | | | | or free appraisals. It is important to make sure |
| mortgage. | | | | that you are comparing like products. In order to |
| 2. Know the different types of mortgage | | | | do this, have your lender present proposals in |
| refinance lenders and the different types of | | | | writing and require ample time to compare the |
| mortgage refinance products that are available | | | | different offers. |
| Just like when your home's mortgage was | | | | Prepare a list of the features of each loan. The |
| originally financed, there are a variety of lenders | | | | type of loan, interest rate, points, prepayment |
| who can refinance your mortgage: Banks, credit | | | | penalties, closing costs are a few of the loan |
| unions, mortgage companies. There are also | | | | elements which should be compared. Check the |
| brokers who will find a variety of lenders for you. | | | | rate you are being offered against the rates from |
| You should be aware, however, that unless | | | | the most current newspaper listings. The more |
| specifically contracted to do so a mortgage | | | | organized, thorough and knowledgeable you are, |
| broker does not have to find the mortgage | | | | the better your decision will be. |
| refinance package that might be the best for you. | | | | Deciding to refinance your mortgage is an |
| Refresh your knowledge of the mortgage | | | | important choice that should not be made lightly. |
| financing vocabulary. Be fluent with terms such as | | | | Know why you are doing it. Know the possibilities |
| interest rate, point and prepayment penalties. | | | | for refinancing lenders and products that are |
| Also, most newspapers publish a daily listing of | | | | available. Be willing to shop amongst the different |
| current interest rates for different types of | | | | lenders and to negotiate a beneficial deal. If you |
| mortgages. Become familiar with these listings and | | | | follow these steps, finding a good mortgage |
| check them on a daily basis. | | | | refinance lender will be much easier. |