Finding a good honest mortgage lender when looking to refinance can be just as important as the mortgage you actually choose. To make the right selection when choosing the right mortgage lender for a refinance here are 4 things you should know or do. These will help ensure you get the best refinancing as possible on your home mortgage.

1)Know why you are looking to refinance a home mortgage.

Looking to lower your interest rate? Need to refinance into a stable fixed rate loan and are in an ARM (Adjusted rate mortgage) now? Looking to get cash back from your homes equity? Maybe thinking about shortening the mortgage length? The most popular reason is to save money every month on mortgage payments. Refinancing into a new mortgage that is just 2% or more lower than your current mortgage loan can save you a lot of money. If you have seen the mortgage rates go up in your ARM loan then a stable fixed rate loan is the right choice. Even more so due to mortgage rates being at near all time lows across the country. Want to take advantage of these low rates and have some extra cash? Then you may want to shorten the length of your loan. You might be able to shorten the loan and still pay the same every month just due to savings from a better interest rate. The mortgage lender you choose will want to know your reason behind refinancing so they can assist you in choosing the proper loan type to meet your needs and expectations. Also, be aware of your credit score and the terms, conditions, and rates of your current mortgage.

2)Understand the different mortgage loan types and the different mortgage lenders.

These days there a number of mortgage lenders more than qualified to handle your home refinancing such as banks, credit unions, and mortgage companies. Also, for an extra fee of course, there are mortgage brokers who will shop a variety of lenders for you using your personal financial situation and goals as the basis of choosing a lender and loan type. Be aware though that sometimes even the deal the broker finds you may not be the best deal you can get. Research typical terms and vocabulary that is used in mortgage refinancing. Terms such as, arm, points, refinance, and pre-payment penalties. Also, be sure to start checking the daily mortgage rates that are posted online and in different newspapers. This way you are accustomed to most of what you will be dealing with before diving into it.

3)Comparison shop refinance quotes between different lenders.
Refinancing lenders have become plentiful with online firms as well as traditional brick and mortar companies growing yearly. This means you will have plenty of mortgage lenders that you can choose from who will be able to actually help you refinance the right way and save money. Start with your current mortgage lender and then pick other companies from there. You can start your search online using sites like mine to find different mortgage lenders and banks. Once you get a good refinance quote from a mortgage lender you like you must get it in writing and shop it around. That means taking the quote you got on paper to other potential lenders. Often they will meet or beat the loan quote you bring in to them in order to get your business.

4)Negotiate the best mortgage refinance you can that will meet your needs.

A lot of times the terms you get from a mortgage lender is dependent upon the type of loan and your personal financial situation. Be sure to have a comparison list of things you want and will be able to get from each specific lender. If you have a problem with the cost of something or the rate ask the potential why it is or what can be done to change that. You hold the final decision and if you do not shop around to different lenders you may pay a lot more for a refinance than you need to.

Refinancing a home mortgage is a very serious thing and should not be done without a little prior knowledge and some simple research. Otherwise you are risking your home for something that you could have been more knowledgeable about with just a few hours of reading and research. Do not ever be afraid to ask questions or walk away from a mortgage lender. Its your home, its your loan, and you have to pay it every month so always be sure you are satisfied with what your refinance deal is before signing anything.

-M Petrone

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