The choice is a huge one when it comes to choosing a lender to refinance your mortgage. There are banks, credit unions and mortgage lenders, all available to refinance your mortgage, as well as brokers who can find a selection of lenders for you. Your choice of lender is a very important decision. The following are recommendations when looking for a refinancing lender:
Why are you refinancing?
You may be looking to refinance to take advantage of a lower interest rate. You may wish to switch from an adjustable rate mortgage (ARM) to a fixed. You might need some cash out of the equity of your home. It could even be that you wish to shorten the terms of your loan to accumulate value faster.
The lender you choose will want to know why you wish to refinance. It will also be beneficial for you to know details of your credit score and the terms of your current mortgage agreement.
Know the market
You should ensure you know the differences in mortgage available to you and which lender is most suited to you. Brokers may be useful in finding lots of refinancing lenders for you, but remember that they do not legally have to provide you with the best deal for you. You should ensure you understand the mortgage vocabulary and have a good knowledge of current interest rates.
Compare the options
Sites like this can provide you with lots of potential lenders. Use the internet to find potential refinancing lenders and research them, with your personal goals in mind. Once you have a quote to work with, use it as bartering power with other lenders to see what they can offer you.
Negotiate on the terms and conditions
Once you have decided on a refinancing lender, ensure you continue to negotiate on the terms and conditions they lay out to you. Lenders base the price for refinancing on your reasons for refinancing. That also means there is a bit of headroom in your quote. If there are no closing costs, try to ascertain why: they may be made up in other costs to you.