Question by dlachel392005: What’s the best way to go about refinancing your home if you’ve refinance before two years ago. I am on a adju
I am on a adjustable rate mortgage and would like to go to a fixed mortgage with lower rate? I don’t know who to go to for the refinancing, My Bank or credit union?
Answer by Finance_Diva
If you have excellent credit your best bet is to go to your credit union or a major bank. Since you have refinanced before, I am assuming that you are familiar with the terms and fees associated with a refi. However, if you are a little unsure about the process and want someone who can guide you through the process, contact a Mortgage Broker and speak to one of their Loan Officers. You should probably ask around and get a referral from someone you know. If you still need some help, send me a message and I will help you.
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Actually, either one will work. What you need to do is pay attention to what you actually want – but also use the knowledge of your banking professional. SOOOO often I get people that just call and say “what is your rate?” and they assume that the lowest number wins. This is a very poor way to do it. You need to sit down and look at your goals and see how long you want to stay in your home.
Now, for an example of what rates and fees do for you –
If you stay at your home for 2 years, you don’t need to pay as much attention to the rate as you would think. If you pay a point or two to get a great rate, you may never see the return on your investment. In reverse, if you stay at the home for 7 years and say “I want no costs”, you will pay several thousand more in interest than you would have paid in points. Rate would be a good driving factor in this situation, as you will be paying interest for a longer period of time.
Now, after all that, realize that you should avoid brokers. Your average bank should be able to do the same loan for cheaper. If you don’t see the term “bank” in their title – they are most likely a broker. They make their money by being the middle man. You pay them a few thousand bucks to find a bank for you. Why not just go to the bank directly?
So, if you need help with all this, let me know. I have worked for a bank for several years and don’t mind being a guide (even if you don’t want to become our bank’s customer 🙂 ).