Refinance Loan – Top Five Things to Know
- Understand your refinance options. There are lots of different refinance programs out there and not all of them are right for you. Do your research and know what you are getting into before you sign the mortgage loan paperwork. Remember that your mortgage loan officer is there to help put you in the best position possible and to make sure you understand. Let them provide you with the refinance information, but make sure that you make the best decision for you and your family. Don’t let them pressure you into a mortgage loan that doesn’t feel right.
- When you find a refinance interest rate you like, lock it in! Too many people make the mistake of trying to wait it out, hoping the mortgage interest rates will go lower. Sometimes they do and that always makes for a great day. But, more often than not, interest rates either go up or stay where they were. Keep in mind that the longer you search for low interest rates, the harder is it for the mortgage lender to get started on your refinance home loan. And if you keep locking your mortgage loan and then switching lenders for a lower refinance interest rate, you might never get closed.
- Do the math! Make sure that a mortgage loan refinance makes sense! Too many people see the prospect of a lower monthly payment and don’t look at the big picture. You may actually end up paying more than you would have if you hadn’t refinanced your mortgage. Find a mortgage lender who will go over the numbers with you so you can see what you are getting into.
- Choose your mortgage lender wisely when obtaining a refinance loan. Just as all mortgage home loan programs aren’t for everybody, the same is true for mortgage lenders. Make sure you go with a mortgage loan officer you are comfortable with and who provides you with the loan information about a refinance loan you need to make the right choice. Your loan officer should be willing to answer any questions you have and take the time to sit with you and explain every little detail regarding your refinance mortgage loan.
- Communication is crucial during a refinance! It is just as important for you to communicate with your mortgage lender as it is for them to communicate with you. Once your mortgage loan process has begun, any financial changes or credit changes must be relayed to your mortgage lender immediately so that it doesn’t hold up the refinance down the road.
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