7 Professional Tips for Refinancing

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Since refinancing is term used so frequently in our society and so many home owners have tried refinancing to help with their current mortgage payments, many people think that there is nothing to it. On the contrary, there are many important factors that need to be considered in regards to refinancing and the home owner must take the time for research, lender comparisons and financial calculations to make sure refinancing is in fact the right financial avenue for them. Failure to take the proper steps throughout a refinancing process can result in a financial tug of war match that you will find no escape from. Check out these 9 professional refinancing tips below to make sure you are successful with your refinancing experience.

1. Do not rely solely on the lender’s published rates. They are not going to advertise their lowest rates and the rate you ultimately will receive depends greatly on your credit report, financial history, etc. Just because they are advertising low mortgage rates does not mean that is the rate you are going to receive. It is best to speak with the lenders and get at least an estimate on your rate if you were to choose their company so you are not jumping into refinance blind.

2.The most specific and precise you are regarding the type of loan or refinance options you are looking for, the easier it will be for your lender to find you the best rates. Having the knowledge and understanding of the industry can really help you stay on the same page as your lender and never get lost in their vocabulary.

3.Try and stay away from No-Cost refinancing. This does not mean your refinancing is free, you will find at a later date that your closing costs were bundled into your mortgage and you are now paying interest on these fees. You will find you are paying almost double than what you would have paid for the closing costs if you would have just paid them upfront. You may also find that your closing costs will not be bundled into your mortgage but instead you receive a higher interest rate. Remember that nothing is free, and when you see lenders advertising this, stay away!

4. Always ask to review your title deed before your refinancing is completed. Many people do not even see their deed until it is filed with the county and by then if there is any wrong information it is too late.

5. Avoid using Escrow for your property taxes and closing fees as you will end up paying yet another fee for the use of Escrow and be in a never ending cycle of payments.

6. Always take the time to carefully review your closing costs. It is important to research and understand what your closing costs are likely to be even before you see them, this way there are no surprises. When you go through the closing cost list of fees you should understand everything and if you don’t, always ask for clarification.

7. Make sure you give yourself plenty of time to close the refinance. Your file is almost always turned over to a title company and sometimes these companies are extremely overloaded and can take weeks or even months to close your file. The key is to make sure you give yourself enough time so that your fixed interest rate does not expire before you close your refinancing. Many lenders only give you 30 days but there are more and more that are expanding this to 45 or even 90 days, the longer the better.

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Filed Under Home Refinancing, Real Estate 

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