Refinancing Your Mortgage:
It's 2019 and mortgage rates are lower so you're thinking of refinancing your current mortgage. Or maybe you need to refinance because you need cash out to improve your home. Whatever the reason is you really should follow these mortgage refinance tips to help make sure you get the best interest rate possible at great terms. No one wants a high interest rate and our goal is to make sure you avoid that by following a few simple rules.
Mortgage Refinance Tip #1:
Stay current with mortgage rates. Search google for terms like "today's mortgage rates" or if you want to be state specific you can type in things like California refinance rates for a more local search of mortgage companies in the state of California. And don't be fooled by companies that offer too good to be true mortgage rates. Make sure your source has a great reputation within the mortgage industry.
Mortgage Refinance Tip #2:
Stay away from companies that have a poor reputation. Visit websites like the Better Business Bureau and do your research on companies you might consider working with. If the company does not have a listing on the BBB or they have a rating below an "A" I'd suggest you find another company to get a quote from.
Mortgage Refinance Tip #3:
Obtain at least 2-3 quotes from reputable mortgage companies. Don't repeat the common mistake of getting one quote from your current lender and not at least checking to see if that quote is competitive. Pick up the phone or search online or ask a neighbor for a referral. Just be sure to get at least 2-3 quotes and make sure they are reputable companies you'll want to work with. It doesn't take long to get a quote and before you call or complete an online request form be sure to know:
- Your credit history
- Your Income
- The estimated home value
Mortgage Refinance Tip #4:
Be quick when sending in your income and asset documentation. You really should have any documentation that the Loan Officer requests in for your review within 48 hours. Don't take 5-7 days to turn something in because it ultimately may delay your closing. And this could possibly cost you thousands of dollars in lock extension fees. Be smart and be quick - send in that documentation within 24-48 hours.
Mortgage Refinance Tip #5:
Be realistic about the rate you'll lock in and the loan process. Everyone wants the lowest mortgage rate possible but not everyone qualifies for that. If you don't have perfect income, a low debt-to-income ratio and a low loan-to-value ratio you're not going to get the lowest interest rate at the best terms.