How To Get The Best Lender When Refinancing Your Home Mortgage
If you are in the process of refinancing your mortgage you might wonder which lender is best for your situation. Does it make a difference if you refinance with a bank, mortgage broker, or Internet lender? The truth is that it does matter and choosing the wrong mortgage lender will cost you thousands of dollars unnecessarily every year you keep the loan. Here are tips to help you find the right lender when refinancing your mortgage.
Mortgage Questions You Need Answered
If you’re focused only on choosing the right lender or the best mortgage rate when refinancing you’re overlooking the most important aspect of taking out a new loan. Isn’t shopping for a new home loan just like shopping for a kitchen appliance? All you need to do is compare closing costs and mortgage rates right? This is true if you’re shopping for a washing machine; however, shopping for a mortgage is based on estimates that are always changing.
If most homeowners ask the wrong questions when refinancing, what questions should you be asking? The question you need answered is not which lender should you choose, but which person should you pick to arrange your home loan. Finding the right person that allows you to refinance with wholesale mortgage rates while paying a one percent fee will save you thousands of dollars and many headaches.
Who Should You Choose To Originate Your Mortgage?
Should you refinance with your bank or an Internet lender? The answer might surprise you but you should never choose a bank or Internet lender for your home loan. The reason banks are out is that they are exempt from legislation that protects borrowers from predatory lending practices. Should you choose a lender that doesn’t have to play by the rules when conducting business? Of course not. The problem with Internet lenders is that you’ll need to talk to a person with the authority to negotiate the deal you’re looking for. Large Internet lenders employ salespeople with little experience or authority to broker the mortgage deal you want.
You Need a Mortgage Broker
To get the best mortgage loan you’ll need to use a broker…and not just any mortgage broker. The person you’re looking for owns their own business; a self-employed broker that does not rely on salespeople to close mortgage loans. The reason you want a business owner with no sales staff is that this broker will have the authority to broker the deal you’re looking for without sharing the commission with a sales staff. This is critical because you’ll be refinancing your mortgage with a one percent origination fee and a wholesale mortgage rate. Sounds too good to be true? It’s really much easier than you think for anyone willing to invest the time to do a little homework before refinancing their home.
Last 5 posts by Louie Latour
- How to Refinance With The Lowest Mortgage Rate - March 8th, 2008
Leave a Reply
You must be logged in to post a comment.