The 6 biggest mistakes refinance shoppers make and how to avoid them
March 2nd, 2010
March 2nd, 2010
Subtle changes in the way you approach mortgage shopping, and even small differences in the way you structure your mortgage, can cost or save you literally thousands of dollars and years of extra mortgage expense.
By learning the "6 Biggest Mistakes Refinance Shoppers Make", Grandview Home Loans can help you eliminate the chances of making a critical error and save you thousands of dollars on your mortgage.
1: Don't shop by just Interest Rate alone.
The lowest rates do not always mean the best mortgage loan.
2: Not shopping around.
There are many sources of mortgage loans. It is a mistake to go to the one that is most convenient or that was recommended by a friend without checking the rates and terms offered elsewhere.
3: Understand Your Reasons for Refinancing.
Some people refinance simply to reduce their interest rate. You should be aware that simply reducing your interest rate is not always to your advantage.
4: Be aware of your new interest rate.
Make sure that you save enough to justify the process of refinancing.
5: Should I Consider an Adjustable Rate?
Adjustable rate mortgages or “ARM’s” can be very helpful in assisting people into the housing market. They can help minimize your monthly payments. However, one should exercise caution as they are made for people with specific needs.
6: Not All Mortgage Brokers are the same.
You want your refinance to be accomplished with as little hassle and in the shortest period of time. Ask your mortgage broker details of their services and performance guarantees.
Discuss these issues with your mortgage company. For additional information regarding these 6 items…
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