How To Get The Best Lender When Refinancing Your Home Mortgage
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by: LouieLatour
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Word Count: 494
If you are in the process of refinancing your mortgage you might wonder which lender is best for your situation. Does it make a difference if you refinance with a bank, mortgage broker, or Internet lender? The truth is that it does matter and choosing the wrong mortgage lender will cost you thousands of dollars unnecessarily every year you keep the loan. Here are tips to help you find the right lender when refinancing your mortgage.
Mortgage Questions You Need Answered
If you're like most homeowners you focus on finding the lowest mortgage rate or choosing the best lender when refinancing your home. This narrow focus works fine if you're shopping for kitchen appliances; however, shopping for a mortgage is a completely different ballgame. You can't simply compare mortgage rates and closing costs because these factors are based on estimates. The estimates you use to comparison shop for a home loan are always changing and are unreliable.
If choosing the best lender is the wrong focus for your attention, what questions should you be asking. If you're choosing to focus your attention on mortgage rates when choosing a lender you're on the right track; however, the question you should be asking is not which lender but who will arrange your next home loan. Finding the right person to arrange your mortgage is the most important aspect of refinancing. The person you choose needs to meet certain requirements in order to offer you the loan you need. In this case a wholesale mortgage rate with only a one percent fee.
Who Do You Choose To Arrange Your Home Loan?
What kind of lender should you choose when refinancing your home loan? Should you pick a bank or Internet mortgage site? You might be surprised...but the answer is absolutely not! The problem with banks is that they are exempt from disclosure laws that protect you from abusive lending practices. Those mortgage websites you see advertising on TV all employ salespeople that won't have the authority to negotiate over loan terms. You need to choose someone with the experience and authority to broker your ideal mortgage loan.
Mortgage Brokers Are The Answer
To get the best mortgage loan you'll need to use a broker...and not just any mortgage broker. The person you're looking for owns their own business; a self-employed broker that does not rely on salespeople to close mortgage loans. The reason you want a business owner with no sales staff is that this broker will have the authority to broker the deal you're looking for without sharing the commission with a sales staff. This is critical because you'll be refinancing your mortgage with a one percent origination fee and a wholesale mortgage rate. Sounds too good to be true? It's really much easier than you think for anyone willing to invest the time to do a little homework before refinancing their home.
About the Author
Ready to refinance your home? Don't get cheated by a dirty broker or lender - check out free, independent video tutorials on getting the best refinancing mortgage rate here.
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