You can refinance your home mortgage with some great
perks. If you do it with no money out of pocket, you can skip
one to three mortgage payments. You can save money on your
payment or pay off your entire mortgage faster when you have
better terms. Here are a few things to pay attention to when you
refinance home mortgage , to make sure that you don’t overlook
anything that you might regret, or that can cause you problems
later
Tips on Refinance Home Mortgage
1. Apply for a pre-approval to many different lenders to make
sure you are getting the lowest rate possible for refinance
home mortgage. When you do
this, make sure that with the initial pre-approval application,
the lender is not pulling your credit history. You will want
to reserve your credit pull for the lender that you are most
likely to work with. You can decide that after you have gone
through the preliminary pre-approval process with a few lenders.
Each time your credit is pulled, it docks your credit score
just a little. If you have too many inquiries, it could keep
you from refinancing your mortgage loan with the lowest rate
possible. When you pre-apply for refinance home mortgage loans online,
most lenders or mortgage service companies will not initially
pull your credit. Check for information about this on their
website. They will usually tell you whether or not they are
going to pull your credit. Also, if on the application you
do not give them your social security number, they cannot
pull your credit. If, on the application, they ask you to
describe your credit, they are probably not pulling your credit.
2. Make sure that your original mortgage does not have a
pre-payment penalty or early payoff penalty of any kind. Sometimes
people will get into their mortgage with the mortgage having
a pre-payment penalty and they will not even know about it.
Pre-payment penalties usually range from 6 months to 3 years
with a penalty for an early payoff. The penalty is usually
about the amount of 6 months worth of your mortgage loan interest,
but this varies. You would have to be able to have some significant
payment and interest savings on your refinance loan to justify
refinancing a mortgage loan with a pre-payment penalty.
3. Before evaluating different lender offers, in the
mortgage loan pre-approval process, pay close attention to the
interest rates they are offering & the closing costs. These
are the two biggest factors that will help you in determining
which lender is right for you. If any of these two factors is
too high, it could not be feasible for you to refinance your
home.
4. It will be good for you to get your interest rate and
closing costs in writing as soon as you decide on a lender to
work with.Try to get your lender to give you a commitment in
advance of all of the costs that will be involved with your
loan.Also find out if the refinance loan that you are getting
has a pre-payment penalty as well. Sometimes the lenders dont
convey important information like this, if they fear that it
might scare you away from refinancing with them.
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