Question by Caesar: Refinancing my home mortgage. What do I need to ask the mortgage companies ?
I presently have a 5.375 – 30 year fixed rate mortgage and my credit score is in the “Grade A”, excellent category . I have spoke with several lenders and I’m getting more confused. I need your help to know the right questions to ask so I can compare apples to apples. Who are the best and safest lenders? I don’t want to give my telephone number to any more lenders because they call me all the time. The more they talk the more confused and flustered I get. I would prefer to communicate with them via-email and give them my list of questions. Please give me a list of the most important questions I need to ask before choosing to refinance so I can get a “real comparison” and not a bunch of double talk and sales gimmicks.
Thanks for your help!
Answer by bud68
5 3/8 % is not that bad. Why are you refinancing? What will is cost, how long will it take to recover the refi costs and how long will you own the home?
Give your answer to this question below!
Keep things simple. You are basically looking for only two things: interest rate for the duration of the loan (MAKE SURE YOU GET FIXED INTEREST), and initial out-of-pocket expense. The initial expense includes closing fees, appraisal fees, taxes, and points. Some things, like taxes, will be the same regardless of whom you go with, but most other things can vary wildly. When I was refinancing last December, and the lenders starting giving me too much sales info, I just told them that I only want to know what is the best rate they can give me, and what will be the overall total cost of the mortgage, with all fees included. After all, it doesn’t matter whether the loan is a %4.5 with $ 2000 in points and no closing costs, or a %4.5 with $ 1000 in points and $ 1000 in closing costs. The effect on your wallet is the same. Afterward, use the loan calculators available on the web to figure out what your total out-of-pocket expense will be. What they do or promise not to do with the loan after (sell it, move it, whatever) is their problem. Your only concern is that in YOUR side of the contract you pay someone at a pre-specified rate, for a pre-specified number of years, after paying an initial agreed-upon fee.
Two best places I ended up having to chose between were aimloan.com and Wachovia, but your results will no doubt vary.
Your first step is to establish the true value of your property through a “state certified” appraiser. The value of your is the most important aspect of your refinance. Any decisions from any lender will be based on that information. You are right, don’t give your info out to any mortgage person til you have your value. I hope you have the value to move forward.