Home Loan Refinancing - Where To Start?
by Mark Askew
Many a
homeowner has tackled the issue "To refinance or not to refinance"
Considering the fact that today's refinance rates are still at historic
lows it's no wonder this has become a popular question of the day. As a
matter of fact many homeowners have refinanced more than once over the
past four years and are now contemplating taking out a home equity loan
for other projects. Still about 29% of homeowners are still in stasis
regarding whether to refinance and are very much unsure of their next
move.
How
long will rates remain ripe for refinancing? A mortgage rates shopping
resource at www.lowmortgagerates.cc gives an interesting answer by
reaching back to examine the interest rates of the ancients. "The
Greeks interest rate was sustained between 10 percent to 12 percent.
The Romans’ carried rates the fluctuated from 4 percent to 50 percent,
depending on where in society men lived." These astonishing reports
indicate that rates have been fluctuation from ancient times up to the
21st century.
So when
interest rates drop to historic levels it's no wonder homeowners raise
a brow or two and consider the age-old question. Is now the time to
refinance my home loan?
Evaluate Your Home Refinance Needs Once one has decided to take
advantage of low mortgage rates other questions need to be answered. An
article "Home Refinance Questions" featured at
http://www.bcpl.net/~ibcnet/ states “When interest rates fall, a
homeowner should definitely evaluate their entire financial situation
and goals before making any final decision. Is your goal to lower your
monthly payment? Consolidate debts? Get cash out for large purchases?
Change your interest deduction expense for your taxes? Should you opt
for a no interest financing or get cash out refinancing? Should you go
for a 15 year or 30 year fixed rate program? The answers to these
questions largly have to do with a number of factors. Will your current
property be an inheritance property? How long will you stay in your
home? Will you be investing in other properties in the future?”
Finding
A Good Lender Once you have settled on the answers to these questions
you pretty much know what direction to take respecting the type of
refinancing needed. One might think that the next task is to find a
lender or broker offering the desired refinancing at the lowest rate.
Actually your most challenging task will not be finding low rates. It
will be settling on a good lender who will offer you quality service.
As the article at www.lowmortgagerates.cc, "Refinance Questions"
reveals, "There are primarily two things to consider when choosing one
lender over another: the quality of service being provided and the cost
of services provided."
Quality
of service is especially important to those who have the task of
refinancing their home. The true cost of refinancing, transferring loan
documents and processing issues as well as the time it takes to
refinance and rate lock-in time are all factored in to the quality of
service. When comparing lenders, ask each lender several interview such
as, how long have you been in business? Can you provide a current list
of satisfied customers? What will you do to make sure my loan will
process within the rate lock period? Who will my loan officer be? What
are the fees for this program? A good lender should be able to give you
specific answers and get you through financing process leaving you
confident that you made a sound financial decision.
Avoiding Predatory Lending The mortgage rate shopping resource
www.lowmortgagerates.cc features an article "How Do I Avoid Predatory
Lending?" states: "Your first step to avoiding predatory lending
tactics is to go with your current lender or get recommendations from
real people who have done business with a lender or broker offering a
seemingly great deal. The best recommendation is from someone you know
and trust."
But
what if your current lender or the lender recommended to you is not
offering rates at the level you're seeing advertised online? Another
article titled "Home Loan Refinancing Questions and Answers" states
"you'll need to motivate your lender to give you the best deal possible
such as a significantly lower rate. The only way to do this is to get a
competitively low mortgage rate quote from other lenders. Present the
deals to the lender and have him meet or beat the rates you've been
offered if he wants to keep your business."
Once
you've settled on a good home refinance product at the lowest rates
offered by a good lender offering quality service you're pretty much at
the home stretch and can look forward to the hundreds you'll likely
save per month and the thousands of dollars in savings per year.
Mark
Askew is founder of the Financial Marketing Network at
http://www.bcpl.net/~ibcnet/ Mark is recognized as a proven expert in
the Internet marketing and web site promotions industry.
Mark Askew may be contacted at http://www.bcpl.net/~ibcnet/ or lhh@fimark.net
