When considering refinancing it’s important to make sure that interest rates have dropped significantly to make your efforts to mortgage rate compare and refinance worth the effort. A good rule of thumb is to consider a two or three percent difference between your current mortgage rate and that of a new rate. In order to get the most value for your refinancing efforts you need to look at the new rate over a period of several years in order to offset the costs you’re required to pay upon closing.
There are many factors that come into play when you consider the ultimate amount you may be able to save by refinancing. Such factors include whether you will be selling your home in the near future and what if any effects there will be on your taxes.
All the more reason to mortgage rate compare and gather information from various lenders. Being a knowledgeable homeowner is vital. Just knowing your interest rate and your monthly payment costs is not enough to win at the refinancing game. A wise homeowner will always mortgage rate compare and gather information about the same loan amount, loan term and type of loan so comparisons are easily made.
Look out for your own best interests and don’t feel pressured to stay with the lender of your original mortgage if their terms aren’t in your best interest.Also be wary of smooth-talking lenders that use high pressured tactics via telephone or door-to-door soliciting. Such lenders are sure to offer easy credit and guaranteed low-interest loans. They prey on homeowners who are in need of cash for home repairs or simply to pay bills. But if it sounds to good to be true chances are it is.
In reality these lenders are offering up little more than loans that have outrageous fees, high interest rates and fine print that makes it very expensive to get out of. A common red flag is when a lender asks for an upfront fee prior to you actually obtaining the loan. If this happens take your business elsewhere.
Mortgage rate compare and arm yourself with knowledge about the mortgage loan process. To protect yourself have the lender write down all costs associated with the loan. Then take the time to read through the loan documentation carefully. Never sign something you don’t fully understand.
Ask the right questions, mortgage rate compare between lenders and negotiate the best refinancing deal you can.
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/