Even though the mortgage lending industry is closely monitored by federal agencies, there are still a lot of different things that could make a mortgage refinance a costly, disastrous decision. The problems may not be necessarily from someone trying to scam you, or wring you dry for as much money as they can get. It could be a fault of the particular mortgage lender you are using. Either way, before refinancing a mortgage you need to be knowledgeable about the subject or be prepared to pay the price.
It is your responsibility to pick the correct mortgage lender for your refinance.

There are all sorts of places offering refinancing advice, especially when it comes to mortgage refinance. There knowledge though may not be so good on the subject. You need to review multiple sources for common traits and trends. You should basically know everything the lender would before going into their office. You should educate yourself about the different types of mortgage refinancing available to you and their benefits and related drawbacks.

Mortgage Refinance Myths

*Your interest rate will be sky high if you have anything but perfect credit
*A 30 year fixed rate loan is ALWAYS the best choice
*Interest rates will only go up from here, you better hurry in and refinance now
*ARM (Adjustable rate mortgage) loans should be avoided like the plague
*Bankruptcy can not ever be recovered from

Of course, there are different answers depending on your personal financial situation. The best thing you can do before going into a lenders office is to learn as much as you can before hand. Use the internet to get rough estimates using online mortgage calculators found on many lenders websites. Once you get a quote you like and meets your terms, conditions and the like, compare that exact quote to all different lenders and see who bites. Chances are you can find a lender who will lower his closing costs or better the deal in another way.


Subscribe via email

Enter your email address:

Delivered by FeedBurner