Lowering your monthly payment can work wonders for your personal finances. Clearly knowing your goals is important when determining which type of refinance to apply for. If your target is to repay your house, inquire about refinancing into a shorter-term loan. Fifteen-year mortgages have lower rates of interest compared to 30-year mortgages and pay back the loan in half the time. The monthly payment may be higher, but it’s not twice as high.
Ask friends, family and trusted company contacts for a mortgage creditor referral. Your CPA or insurance broker may recommend trusted mortgage lenders who will treat you and give you a fair thing. Don’t rely on just a couple of referrals, however. You should obtain additional quotes too.
Most banks offer loans. Talk to a home loan officer at the branch where you have your bank accounts. Banks sometimes have specific programs for its existing customers. Even if they don’t have a distinctive applications, they can charge an existing client less for financing.
Mortgage brokers have access to multiple banks and lending resources. Banks typically have their own applications to offer, while a mortgage agent might have dozens of lenders and hundreds of applications to select from. Contact your state’s agency that regulates mortgage brokers to ensure your agent is properly licensed and in good position.
The Internet provides a way to research many lenders. Some sites specialize in supplying you quotes from multiple lenders. Be cautious not to give out sensitive personal information, such as your Social Security number, over the net. Know whose site you are using before giving personal details.
Telephone your present lender. In case you have made all of your payments on time, it might have a simplified refinance application available exclusively to current customers. A number of those programs do not need proof of income, assets or perhaps an assessment. If the creditor does not have a special refinance application, request it to supply you a quote anyhow. Remind the creditor you are a current client and there is no cost to them to keep you as one, just the danger of losing your business. This will encourage the creditor to keep your settlement penalties and interest rate lower than it normally would.