Refinancing your home can be daunting. With all the recent news about subprime loans going bad and loan officers not looking after your best interests, this can be daunting. This article will give you some ideas and tips to help you navigate the refinancing of your mortgage.
It is always a good idea to get multiple quotes from different lenders. You don't have to pay anything and quotes are completely free so there's no reason not to get a quote.
Refinancing can take a while. A loan must go through many stages, including underwriting and home appraisals. It is important to plan and be aware that refinancing can take up to a month.
Consider closing costs and interest rates together. Avoid programs that claim to offer to refinance at no cost. Lenders can either be paid at higher interest rates or lower closing costs. Nobody can get something for nothing.
Understand the pros and cons of escrowing taxes and insurance together. Make sure you are comfortable with the decision. Lenders may charge extra fees for this service. If you're not careful with your money, it might be a good idea to earn interest and then pay lump sums.
Be aware of prepayment penalties for both your existing loan and the loan you are entering. Prepayment penalties can have a significant impact on your ability to refinance. Prepayment penalties can be applied to loans that you refinance. The timeframes for these penalties may vary depending on the loan.
This article does not offer any advice. This article is meant to give you ideas and guidelines that can be used to help you with your particular situation. These will help you make the right decision.