Finance & Marketing

Are you considering refinancing your mortgage loan? Did you know that choosing the wrong kind of lender will cost you thousands of dollars? It makes a difference refinancing with a mortgage broker, bank, or Internet lender; the difference is thousands of dollars in unnecessary interest payments. Here are several tips to help you choose the right mortgage lender when refinancing your home.

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 choosing the best lender is the wrong focus for your attention, what questions should you be asking. If you’re choosing to focus your attention on mortgage rates when choosing a lender you’re on the right track; however, the question you should be asking is not which lender but who will arrange your next home loan. Finding the right person to arrange your mortgage is the most important aspect of refinancing. The person you choose needs to meet certain requirements in order to offer you the loan you need. In this case a wholesale mortgage rate with only a one percent fee.

Who Should You Choose To Originate Your Mortgage?

First of all, should you pick an Internet mortgage site or a bank to refinance your home? Absolutely not! You should never refinance with a bank or credit union due to loopholes in the Real Estate Settlement Procedures Act that protects homeowners from abusive lending practices. The problem with those Internet mortgage sites you see on television is that you’ll be dealing with an inexperienced salesperson that does not have the authority to broker the deal you want.

Mortgage Brokers Are The Answer

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.