There's no such thing as the single best home mortgage. The best home mortgage for you is the one that fits you and your personal situation. Here are some things to think about before you decide. 1. Look carefully at your current financial situation. Try to determine what your financial picture will look like over the next several years. 2.Study interest rates to get a sense of where they are headed. The Wall Street Journal, Barron's (printed on Sunday only) and some of the better Sunday newspapers have comparative interest rate information for the last year. 3.Determine how much you will be putting down on your house and how much you can afford to pay monthly. 4. Decide how long you expect to be in the house. If you expect to stay for only a few years, look at ways to reduce the down payment and to keep the closing costs and points as low as possible. (A point is one percent of the amount of your loan; buyers generally have to pay a certain number of points as part of their closing costs.) If you plan to stay for several years, it's more important to get the lowest interest rate you can. 5. Understand the differences between the mortgage choices available - fixed, adjustable rate (ARM) and balloon (see "How to Decide Between a Fixed and Adjustable Rate Mortgage"). 6. Decide which is more important to you now and over the long run: having a steady, constant mortgage payment, or paying the lowest initial rate with the possibility that your mortgage payment could rise.
If you're considering refinancing your home loan you might be wondering which lender is best? Should you choose a bank, mortgage broker, or a website on the Internet for your next mortgage? The fact is that choosing the wrong lender will cost you thousands of dollars in unnecessary finance charges. Here are several tips to help you choose the best lender when refinancing your home.
Mortgage Questions You Need Answered
If you're like most homeowners you focus on finding the lowest mortgage rate or choosing the best lender when refinancing your home. This narrow focus works fine if you're shopping for kitchen appliances; however, shopping for a mortgage is a completely different ballgame. You can't simply compare mortgage rates and closing costs because these factors are based on estimates. The estimates you use to comparison shop for a home loan are always changing and are unreliable.
If most homeowners ask the wrong questions when refinancing, what questions should you be asking? The question you need answered is not which lender should you choose, but which person should you pick to arrange your home loan. Finding the right person that allows you to refinance with wholesale mortgage rates while paying a one percent fee will save you thousands of dollars and many headaches.
Who Do You Choose To Arrange Your Home Loan?
Should you refinance with your bank or an Internet lender? The answer might surprise you but you should never choose a bank or Internet lender for your home loan. The reason banks are out is that they are exempt from legislation that protects borrowers from predatory lending practices. Should you choose a lender that doesn't have to play by the rules when conducting business? Of course not. The problem with Internet lenders is that you'll need to talk to a person with the authority to negotiate the deal you're looking for. Large Internet lenders employ salespeople with little experience or authority to broker the mortgage deal you want.
You Need a Mortgage Broker
If you want the best mortgage loan you'll need to enlist the help of a mortgage broker; but not just any broker. You need to find a self-employed mortgage broker that owns their own business and does not employ a sales staff. The reason for this is that as the business owner your broke will have the authority to negotiate their commission and will not be splitting it with a salesperson. Why is this important? Because you'll be refinancing your home with a wholesale mortgage rate and only paying a one percent origination fee. Sounds impossible? It's not only possible but it's much easier than you think for anyone that does their homework before shopping for a home loan.
Both Katie George & Louie Latour are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Louie Latour has sinced written about articles on various topics from Finances. Louie Latour specializes in showing homeowners how to find the best lender when refinancing. Before you refinance your mortgage loan, make sure you check RefiAdvisor's excellent free video guide to getting the best. Louie Latour's top article generates over 12100 views. Bookmark Louie Latour to your Favourites.