Home Mortgage Refinance Choosing The Best Deal

Home Mortgage Refinance Choosing The Best Deal



Home Mortgage Refinance: Choosing the​ Best Deal
There are plenty of​ home mortgage refinance lenders doing the​ rounds .​
Almost everyone is​ offering you​ the​ skies,​ but this might be confusing for you​ .​
How do you​ choose the​ most genuine home mortgage refinance option? Here’s a​ quick guide on​ choosing the​ best home mortgage refinance deal!
Questions to​ be asked
As a​ borrower,​ there are chances you​ maybe taken advantage of​ by unscrupulous lenders .​
To avoid this you​ need to​ ask a​ few basic questions first and even do a​ comparison check:
• What is​ the​ type of​ mortgage being offered? Find out if​ the​ interest rate is​ fixed,​ adjustable,​ FHA or​ conventional.
• What is​ the​ minimum deposit or​ down payment needed on​ the​ home mortgage refinance? Knowing this will help you​ plan finances better.
• What is​ the​ duration or​ length of​ the​ loan? This will affect the​ monthly payment on​ the​ mortgage.
• What is​ the​ Annual Percentage Rate? This is​ quite a​ competitive differentiator these days and can help you​ select the​ best lending home mortgage refinance company.
• What will be the​ monthly payment? This will be important in​ terms of​ planning your budget and finances etc.
• What are the​ various applicable fees? There are several kinds of​ fees being charged by lenders these days and each lender has their own name for it .​
Some examples of​ home mortgage refinance fees include:
o application fee also known as​ loan processing fee
o Lender fee or​ funding fee
o Appraisal fee
o Attorney fee
o Document preparation and recording fee
o Credit report fee
o Origination or​ underwriting fee etc.
• What will be the​ closing fees? There maybe chances that you​ wish to​ close or​ settle your home mortgage refinance .​
In such cases you​ need to​ know applicable fees at​ the​ time,​ so it​ doesn’t shock you​ then .​
Some of​ the​ closure fees include:
o State and local taxes
o Flood determination
o Surveys and home inspection fees
o Prepaid amounts towards interest,​ hazard insurance,​ taxes,​ etc.
o Prepaid private mortgage insurance or​ PMI
• is​ there any prepayment penalty involved?
• is​ the​ agreement for lock-in provided in​ writing by the​ home mortgage refinance lender?
Interest rates applicable
It also helps to​ get a​ free,​ no obligation quote from your home mortgage refinance lender .​
Also check with them if​ the​ rate quoted is​ the​ lowest for that day or​ the​ whole week .​
Check if​ the​ interest rate is​ fixed or​ adjustable in​ nature .​
In case it​ is​ the​ adjustable variety,​ find out from the​ lender how the​ payments will differ .​
Also be sure to​ check on​ the​ points .​
These are fees paid to​ the​ lender and are strongly linked to​ the​ current interest rate .​
The more points paid,​ lower the​ interest.
Negotiate
Once you​ have zeroed in​ on​ a​ specific home mortgage refinance lender,​ you​ need to​ try and negotiate the​ terms of​ the​ contract .​
Ask your home mortgage refinance lender to​ write down all associated costs and fees and then start negotiating on​ some of​ the​ fees.




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