Question by GranolaGurl: What is the best way to go about refinancing your home mortgage?
I generally know that I would try to find a bank or lending place that will offer me a lower rate than I currently have, but was wondering how to make sure the new terms are to my advantage. For example, my realtor helped me go over my mortgage materials originally and do not want to agree to something that isn’t a good idea, i.e., hidden fees.
Answer by charles w
i dont know
Add your own answer in the comments!
Fees must be disclosed. It is part of the RESPA guidelines. The lower the rate the higher the fees. Sorry but Mortgage bankers do not work for free any more than you do. You can have the fees financed into your new loan or pay them which ever you choose. remember that part of your settlement cost are tax deductible. Just as your mortgage interest is.
I am a mortgage banker in TN & KY
You should find you a mortgage broker from your telephone book, unless you can get a referral from a friend or neighbor.
He will complete a loan application for you, this will not take a short time so pull up your comfortable chair get your favorite beverage and allow him to complete the application either over the telephone, by faxing the application to you,or you going to his office.
He will need the following items to get started
#1 Six months bankstatements from each bank you are currently doing business with as well as any statements from your 401k plan from your job.
#2. One month of pay stubs from each job and anyone else on the mortgage
#3 2 years of federal income taxes along with the W-2s
Once the application is complete he will run a credit report which will tell him your credit scores. Your credit scores will tell him the type loan programs you are qualified for, to include the interest rate.
He will issue you a good faith estimate (GFE) outlining all the fees, points and other cost of the loan. If you have a problem go over each charge item by item, take notes. Some or most of these fees are not the mortgage broker’s fees.
You have escrow fees, title fees, appraisal, credit report cost and other items that you will be charged, but he can explain each one to you.
You should outline to him why you are getting refinance, what you plan to do with the money from the refinance.
Prior to getting your loan docs and the closing of the loan your mortgage broker might ask for additional information or documentation, just get it or tell him what he needs to know this is common so don’t get all tense and go on a binge.
I hope this has been of some use to you, good luck.
Mortgage brokers usually charge you higher fees than a bank would. No need adding an extra middle man into the grand scheme. Realtors typically get kickbacks from mortgage brokers for referrals. Who pays for it? You do.
If you can afford it and if you’re planning on staying in the property for a while, discuss paying points to get a lower interest rate. You’re going to pay more up front, but your payments are going to be lower and it typically pays off if you plan on staying in a property for 5+ years.
With any LEGITIMATE company, there are no such things as “hidden fees”. All fees should be disclosed by any reputable lender. One thing to be careful of is that a lot of lenders when going over prepaids, only take into consideration one day’s worth of interest, which is only accurate if you close on the last day of the month. If you close in the middle of the month, you need to multiply that number by about 15 days.
go to http://www.dotheloan.com, maybe somebody can give you really good rates
The easiest way to find the best deal for your refinance is to get a quote from a mortgage broker and have them send you a Good Faith Estimate outlining all the fees. Most brokers work with a large amount of lenders in the wholesale market and are able to find the best deal for you. A good broker will explain all the fees and details fo the loan you are looking at, so when you sign there should be not surprises. The most important part is to make sure that you are looking at a loan program that meets your needs.
I am a broker and can lend in most states. Contact me and I can give you some more specifics on the process and pitfalls to watch out for.
If you would like, we can give you a pricing and see which company has the lower rate.