Trends in refinance mortgage rates

Trends in refinance mortgage rates

Lately refinancing has become pretty popular. Low interest rates combined with a host of government programs and incentives means that many people can find a better deal than what they currently have. When you are looking to refinance, you have two options. You can either refinance with your existing lender, or you can go with what another lender has to offer. In order to get a better look at these options, it’s important to examine their differences in refinance mortgage rates:

Your current lender knows you as well as your finances.
Looking at other lenders increases your chances of getting the best deal.
Your lender knows the most about your current mortgage.
More lenders equal more choices. (For example: some programs or government incentives may not be available from your lender.)

As you can see, there are several key differences. On one hand there is the comfort factor in going to someone who already knows you. On the other, there is a good chance of getting a better deal and saving more money if you shop around.

When it comes to getting a good refinance, everyone has something different to say. This is because a “good deal” depends a lot on what you are looking for. Those who want to access some of the equity built up in their home will likely think that a good deal is different from lowering their monthly payments.

In the same way, those who want to own their home as soon as possible will be looking for different things all together. Knowing what you want to get out of your refinance is the first step to getting a good deal.

Once you make the decision about what you are looking for, finding a good deal is much easier. Consider these three aspects when deciding whether an offer is a good deal for you or not.

Term

If you want to own your home as soon as possible, refinancing to the shortest term fiscally possible is crucial. If you are looking to lower payments as much as possible, longer term loans such as 30-year fixed-rate mortgage products work well. Watch out for “deals” that have terms that you do not understand. There are many types of mortgages out there, and uncertainty with your term could leave you very unsatisfied with your mortgage, regardless of the interest rate.

Cost

The up-front cash you will need to close on a given loan. Depending on the loan provider, you may not have to pay anything. For those with little cash to spare who are looking simply to lower monthly payments, having a no-cost or low-cost mortgage product is key to getting a good deal.

Rates

Finally, after all other decisions are made on the best type of mortgage for your situation, interest rates are the last deciding factor.

Just because your monthly payment or interest rate decreases doesn’t mean a refinance is a good deal, though a lot of times it can be a good sign of some savings.

www.refiadvisor.com Refinance Mortgage Rates – How to get the lowest possible rate when refinancing your home without paying junk fees.
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