Mortgage Refinancing - 3 Tips to Help You Find the Best Mortgage Lender

If you are considering mortgage refinancing for any reason, comparison shopping for the best mortgage lender could save you thousands of dollars. Mortgage lenders vary widely with the fees and interest rates they charge. Doing your homework and researching mortgage lenders will help you avoid many costly mortgage refinancing mistakes. Here are three tips to help you evaluate mortgage lenders when mortgage refinancing.

Mortgage Refinancing: Choose the Right Type of Loan for Your Situation

Before refinancing your mortgage you need to determine which type of mortgage is right for you. There are three basic loan types to choose from depending on your financial situation and tolerance for risk: you can choose mortgage refinancing with an adjustable rate loan, mortgage refinancing with a fixed interest rate, and mortgage refinancing with a hybrid loan.

Fixed interest rates have the advantage of predictable payment amounts that you can plan your budget around. Adjustable Rate Mortgages come with much lower interest rates during the introductory period, but come with a higher level or risk. Finally, hybrid mortgages offer the best of both types by offering a fixed rate for a period of time that converts to adjustable interest rate later on. When choosing a lender for mortgage refinancing, try and shop from lenders that offer a variety of loan packages, or one that will tailor an offer for your financial situation.

Mortgage Refinancing: Evaluate the Customer Service You Receive

When you shop for a mortgage lender, pay attention to not only how you're treated but how cooperative the mortgage lender is. Ask how the mortgage company guarantees your interest rate and if you can see the guarantee from the wholesale lender. The guarantee you get from the mortgage company is often not the interest rate you were qualified by the wholesale lender. Asking for the original written guarantee and the Good Faith Estimate before submitting your application is half the battle to qualifying for the best mortgage. If you find a cooperative mortgage company that offers good customer service you should factor that into your decision.

Mortgage Refinancing: Check the Mortgage Company for Complaints

Before choosing a mortgage company, check with your local Better Business Bureau and the office of your State's Attorney General to see if that company has any complaints. Remember that your lender and mortgage company are two separate companies. Mortgage companies and brokers are simply reselling loans for wholesale lenders. Make sure that the mortgage company or broker isn't inflating your interest rate for a profit. Choosing a reputable mortgage company will help ensure you are not overpaying the retailer when mortgage refinancing.

You can learn more about your mortgage refinancing options, including costly mistakes to avoid by registering for a free mortgage guidebook.

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Posted in: Lender,Mortgage,Refinancing