Refinancing Your Mortgage:
If you are considering a refinance of a current mortgage then one of your main goal is probably to save money.
Even if you are taking cash out, getting rid of PMI (or MI) or maybe you’re moving from a 30 year fixed rate mortgage to a 15 year fixed rate mortgage...you’ll still want to save money.
Below you’ll find useful tips that could save some homeowners thousands of dollars and might also make your next refinance transaction a bit easier.
And for those of you who are in a super rush and only want the number one tip; here it is:
My best possible tip when refinance your mortgage: Only work with a top rated company (A rating or higher with the Better Business Bureau) and a Loan Officer with at least five years experience (ideally 10+ years).
Tips That Can Save You Money:
Below are money saving tips for your next mortgage transaction.
- Only work with a well respected mortgage company that has at least an “A” rating with the Better Business Bureau.
- Only work with a Loan Officer that has at least five years of experience. Ideally you’ll want to find a Loan Officer with at least 10 years of experience.
- Stay on top of current mortgage rates. Avoid the websites that have “rate tables” and use sites that are highly rates.
- Rarely does it make sense to pay more than one point. When points are involved make sure you recoup the costs of the points within a suitable time frame. Anything longer than 2-3 years comes with risks you may not see the savings from the lower rate that came with a higher cost.
- Don’t do a 15 year year fixed mortgage term unless you are nearly certain you can afford the payment. It’s great to pay off the house early; just make sure that the higher payment is something that works for your budget.
- When you lock in your interest rate make sure you obtain the Locked Loan Estimate from your loan officer.
- When it comes to locking in your rate; never assume it’s locked...get the confirmation in writing.
When doing a refinance it’s important to ask questions and make sure you understand what’s happening. There is a lot going on but it’s absolutely necessary you ask questions to ensure you’re fully informed with the type of loan you are obtaining.
What do you do if your Loan Officer doesn’t like to answer questions?
Find a new Loan Officer.
There are 10's of thousands of Loan Officers out there; if the one you’re working with doesn’t want to answer your questions then find someone that will.
Lastly; if you see a mortgage rate with terms that work for your financial situation please avoid the mistake so many people make.
What’s the mistake?
They wait to see if they can get it slightly lower and usually end up missing out on the terms they could have locked in originally.