You should always mortgage rate compare to find the best mortgage to meet your needs before refinancing.
Mortgage rate compare by contacting at least three different mortgage lenders. Despite your reason for refinancing – lower monthly payments or to build equity faster, three lenders are better than one.
Record numbers of homeowners are jumping on the refinancing bandwagon in an effort to lower their mortgage interest rates. According to the Better Business Bureau (BBB) refinancing is not for everyone and or those that decide that it is, it’s best to mortgage rate compare before signing on the dotted line.
Industry experts claim that homeowners are refinancing in record numbers. While this is all well and good for some it may not be for others. It’s true with a good refinancing package you can potentially shave hundreds of dollars off your existing mortgage but it isn’t for everyone.
The Better Business Bureau recommends homeowners mortgage rate compare and take the time to negotiate the best deal possible. The association however also suggests that homeowners should proceed with caution when it comes to dealing with some lenders.
In an effort to help homeowners determine if refinancing is in their best interest, the BBB suggests you take the following into consideration when doing a mortgage rate compare.
The long and short of it is that you are simply applying for a new mortgage at a lower rate which you then in turn use to pay off your old loan. The advantage for lenders is that they can profit once again by requiring you to pay for most of your original costs once again. Such costs may include loan application fees, a credit check, title search, lawyers fees and an appraisal. In many cases discount points and other more uncommon finance charges may also apply.
That said when you mortgage rate compare you will also find institutions that offer refinancing plans where most if not all of the above mentioned costs are folded into the loan thereby reducing your actual out of pocket fees to a minimum. A tax deduction on the interest may also be a possibility. Consult with you tax advisor to see if one would apply.
About the Author:
This article is part of the resources, guides and tools dedicated to your finance successes found on Keith Choy’s WealthMountains Site. For re-print rights to this article, do drop Keith a note from his website at http://www.wealthmountains.com/contact-us/
See Part 2 Of This Article For More Tips On How To Mortgage Rate Compare To Get The Best Deal. Click Here.