A Comparison of Mortgage Refinance Rates

Document Sample
A Comparison of Mortgage Refinance Rates Powered By Docstoc
					It is not necessarily an easy decision to get a mortgage refinance. You probably have
weighed all other options before concluding that this might be the best course of
action for you to take. Once you have decided to refinance your mortgage, it might be
time for you to start figuring out the best mortgage refinance company from whom
you would wish to borrow money. Although the application process for a first
mortgage and a mortgage refinance are almost similar in nature, you would need to
approach the matter from a different angle on your second mortgage and consider
your options from a different point of view.
Just as it was with your first mortgage, you would probably want to consider the best
refinance rates you could get for your second mortgage. It is advisable that you take
the following steps to gain some idea on the possible refinance rates you could
actually get:
i) Checking out national rate
  Different states have different interest rates. Depending on the state where you reside,
it would probably help you more to check the national mortgage refinancing rate.
ii) Inquiring about purchasing points
  Generally refinancing means you might be able take a loan at a lower interest rate to
pay off your old loan. Depending on the mortgage refinance options that you have
considered, you could probably get your second mortgage approved with a
significantly lower interest rate. However, this does not mean that you automatically
get to pay less every month. It might be important for you to get your creditors to
clarify whether you will need to pay for the buying down of the interest rate or not. It
could be that you are able to get a low interest rate because your creditor will write it
up as your purchasing points to get the low interest rate. The fees for purchasing
points are rarely included in the introductory interest rate. This is why it could be one
of the most important things you might need to be sure of because if it turns out that
you might actually have to pay extra for the purchasing points, you would probably
end up having to spend thousands of dollars for the purchasing points alone.
iii) Closing costs
  In many cases, if you opt to refinance your mortgage with the very same lender from
whom you borrowed for your first mortgage, they will more than likely be very glad
to assist you in any way they can especially if you have been a good paymaster. After
all it is easier for financial institutions to keep old customers to come back for their
business rather than venturing out to find new clients. If you play your cards right,
you probably could get your creditors to lower or dismiss the closing costs of
refinancing your home mortgage. So it may be important for you to be up-to-date in
your mortgage payments in order to create a good impression on your creditors.
iv) Comparing and negotiating
  Sometimes it could also be a good idea for you to compare interest rates offered by
lenders other than your current one. You can compile all the information you have on
the different interest rates and use that as the basis of your negotiation with your
current lender in order to get your current lender to at least consider to give you a
lower interest rate than what is available in the market. They would in all probability
prefer to keep the business they are already doing with you rather than let you go off
to other lenders so the chances of you getting your way might be quite good.Of course
you might have to remind yourself to use a mortgage refinance calculator to
determine how much you could actually afford to spare every month if you are on a
mortgage refinance program before you start comparing interest rates. By doing so,
you will be more focused and may be able to concentrate on the range of interest rates
that you can afford rather than blindly comparing figures without knowing the head or
tail of the situation.