Mortgage Refinancing Rates

When refinancing a mortgage loan, homeowners have several options. There are numerous reasons for refinancing an existing mortgage. The past five years have witnessed low mortgage rates. However, low rates will not remain forever. Before interest rates begin to climb, homeowners should take advantage of their refinancing option.

Careful comparison shopping when mortgage refinancing will save you money and many future headaches. Comparing loan offers from a variety of mortgage lenders allows you to choose the mortgage with the most competitive fees, interest rate, and closing costs. When you shop for mortgage offers it is important to request stated income, “no-obligation” quotes so the lenders do not access your credit reports until you are ready to submit the application.

Homeowners who are satisfied with their existing mortgage lender may consider obtaining a new mortgage with the same lender. However, using the same lender is not required. In fact, even if your mortgage lenders offer a good refi loan rate, it helps to obtain additional quotes and compare the different offers.

Teaser rates are different from the introductory interest rate you get with an Adjustable Rate Mortgage. These loans typically come with a lower introductory interest rate that often lasts as long as ten years. Introductory interest rates can be short-term as well, so it is important to read the fine print before choosing a mortgage with a teaser or introductory interest rate. If you fully understand what you’re getting into, an introductory rate could save you money with an Adjustable Rate Mortgage.

To fully understand what you’re getting into with any mortgage loan, carefully read the Good Faith Estimate to find out exactly what you’re paying for mortgage refinancing.