If you make a mistake when you decide to refinance your home mortgage, it will cost you thousands of dollars in unnecessary expenses. Here is some quick refinance mistakes often made by homeowners.

1. The time frame is wrong.
Do not be in a time crisis when going through the refinancing process. You should always be able to walk away from any deal if there are last minute adjustments, or other added expenses or terms you do not like. It is not uncommon for people to just want to get the deal done instead of go through the whole process again, especially if you really need the money. A greedy lender will try to take advantage of this fact, and will often retract to the original terms if you threaten to leave. Unless everything is in writing by the lender, it is not official, so try to get everything in writing and signed.
2.Paying to much in closing costs and fees.
The closing costs of mortgage refinance lenders vary greatly depending on the company. Just 1 point in costs is equal to 1% of the amount of the loan. So if a lender wants to charge you 2 points on a mortgage refinance loan on a $300,000 loan, that amount is $6,000.
Try to get good faith estimates within 3 days of applying for a loan anywhere. Carefully compare these estimates from a variety of mortgage lenders. Make sure you are comparing the same numbers on every quote you get and narrow the list down from there. Make sure to check that each loan type is identical. Such as a 30 year adjustable or a 30 year fixed rate. These are two very different types of loans. Having 3. Not having a quoted mortgage rate locked in.
Your mortgage lender should ideally lock in your quoted rate with a lender. You should request a copy of the locked in rate prior to signing any kind of loan document. This way you will know what to expect in terms of any last minute surprises, and interest rate to expect.
4. Wrong type of loan
Make sure that you know what type of loan that you will be looking for and do not get the wrong type of loan for you. Many people choose what the lenders tell them to do which is usually not what should happen. These lenders make money by making you pay more.

Look here tomorrow for more home mortgage refinance tips


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