- Posted by: steve
- Category: refinance
Are you considering refinancing your current home mortgage?
If so, you want to find the best mortgage refinance companies in your area before you make this important financial decision.
According to the White House, the average homeowner in 2016 could save $3,000 per year by refinancing their mortgage. Over the course of a 30-year mortgage, that is $90,000.
Many people choose to refinance to lower their interest rate and subsequent mortgage payments. But there are other costs associated with refinancing that you need to be aware of going into the process.
Read on to learn what you need to know so that you can find the best mortgage refinance company for your new loan.
Do Your Research
The decision to refinance your mortgage is an important one for you and your family. Just like any big financial decision, you need to do your research about the process before you pick a mortgage refinance company.
Refinancing your mortgage is meant to be a savvy financial decision. But in order to completely understand your costs, consider your term, interest rate and other costs built into the new mortgage.
You should have a good sense of what the current market dictates when it comes to competitive interest rates. You can learn this by going to reliable sources to read about where interest rates are.
Also, consider where the market is headed. Are interest rates expected to stay the same for a while, go up or down? Just like when you are buying or selling a home, timing is important.
If you are going to refinance your mortgage, try to be sure you are doing at the most advantageous time for you and your loved ones.
Talk to Friends and Family
One way to learn more about the best mortgage refinance companies in your area is to speak with trusted family and friends.
Do you know someone that has recently been through the refinancing process?
Pick their brains about what they liked about refinancing and what they didn’t. By speaking with people you trust and who know you well, you can get a better feel for what to expect.
You can also learn about what they may have done differently and how they felt about the mortgage refinance company they chose to work with.
Look at Reviews
Reading reviews by former clients can also be a good way to gather information about a prospective mortgage refinance company.
Perhaps you are moving to a new area where you don’t know many people. Or maybe you don’t have any friends or family that have been through the process of late.
Reviews can be an effective way to gain insight into what others liked and disliked about working with a particular company.
Prepare the Right Questions
By doing your research and speaking with friends, you can prepare a list of questions to ask the mortgage refinance companies who have made your short list.
It’s important to pay attention to how the company handles your questions. Are they making time to speak with you? Are they helping to ensure you understand the answers they give?
If the answer to either one of those questions is “no”, it is probably worth considering other companies. The best mortgage refinance companies understand they are working in a service-driven industry.
As a potential client, you have many options when it comes to which company to choose, so it’s important that they go above and beyond to earn your business.
Read the Fine Print
The best mortgage refinance companies will answer all your questions about costs.
Besides your principal and mortgage payment, other costs may include your application fee, loan origination, and document preparation fees. Other costs can include your title fees, the appraisal report and recording fees, among others.
You should understand what all of these mean before you agree to refinance your mortgage. But even if you have studied these terms to understand what they mean, the best mortgage refinance companies will explain them to you in more detail.
Do you see any unexpected costs on the mortgage you are considering?
They should be able to explain what those costs are and you should feel comfortable with their explanation for them.
Know Your Break-Even Point
Before you make your final decision on a mortgage, understand your break-even point. The amount of savings you need on your new loan, in order to make refinancing worth your while.
“Refinancing a mortgage involves more than just comparing interest rates. Before you decide to pull the trigger, calculate the total cost of an appraisal, title insurance, and closing costs,” wrote Maggie McGrath of Forbes.
“Then, divide that number by the amount of money you’d save each month with a lower interest rate on your home; that answer is your break-even point. “(That is) the amount of time (in months) it’ll take you to recoup the expenses you put into refinancing to a lower rate,” she said.
“If your break-even point seems farther out than you’re willing to stay in the house, refinancing might not be worth it.”
By knowing this number, you will feel more confident as you make your decision to refinance or not.
How Long Will It Take?
Are you looking to refinance your mortgage quickly? If so, it’s important that you find a mortgage refinance company that
If the answer is yes, find a mortgage refinance company that will respond to your questions fast. They should also work diligently to close the deal quickly.
The more time it takes them to close on the new mortgage, the longer you are stuck in your current one. And after all, the reason you want to refinance is that you prefer the new mortgage terms to your current situation.
Wrapping Up: Find the Best Mortgage Refinance Companies
Refinancing your mortgage can be a valuable tool for cost savings on your home.
But to make the most of this opportunity, you have to find the best mortgage refinance company for your needs.
At New Florida Mortgage, we are a mortgage company based in Palm Beach Gardens. We were established more than two decades ago and help individuals and businesses with their all of their mortgage needs.
Contact us today to learn more about our mortgage refinancing services and how we can help you!