Steps to the Best Mortgage Refinance Rates
Home ownership is something most of us aspire to. Many of us equate owning your own home to freedom and peace of mind. However, the dream of home ownership to many will remain a dream thanks to jumbo mortgage rates. This doesn’t have to be the case for you. Here’s how you can get the best mortgage refinance rates.
The baseline
Like with any other investment, you need to establish a baseline. You need to know just how much you are willing to spend on your home and the best way to finance the purchase of your home. You can do this with the assistance of a mortgage broker. Your first task therefore is to seek out top rated mortgage brokers to assist you in establishing the best financing options for your set of circumstances. You should provide the lender with your credit information. They will then be able to advice you on the best approach to fulfilling your dream.
It is important to contact a single lender to check your credit rating and provide this information to other lenders when searching for the best rate. Multiple inquiries on your credit rating will only lower it.
Compare lenders
You will shop around for different suppliers when you are buying a car, clothes or anything else and would like to ensure that you are getting the best price. This is not different when searching for the best mortgage refinance rates. You need to compare what different lenders have to offer.
Contact different financers. You may also want to contact other top rated mortgage brokers to find out if they can get you better rates. Contact different types of financers i.e. credit unions, banks, community banks and many more. Some financers offer packages to attract customers. You may be able to take advantage of these packages.
Lock in your interest rate
You should have a date or timeline in mind when you approach the mortgage companies. Knowing when you expect to close will help you to lock the interest rate for that specific period. You should make the timeline for locking your mortgage known to the financers when you approach them. Many mortgage companies will charge you as little as one-eighth percent if you will lock your mortgage within 60 days. They will charge you one-third if you lock after 90 days.
Fees
It’s important to ask your chosen mortgage brokers about the fees associated with the mortgage. You may think you have landed on a great deal with the lowest mortgage rate possible but find that you are paying through your teeth because of the fees associated with the mortgage. Be careful to read between the lines and take note of other charges that are not included in the mortgage rate.
Contact financers on the same day
It’s interesting to note that mortgage rates are constantly changing. You may be offered a lower rate today only to find the same company giving jumbo mortgage rates after a week. It is important to contact the mortgage brokers you are considering within the same timeframe to make a better comparison.
