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Refinance Shopping

Tips The Mortgage Pros Use When They Shop For Home Loans

Refinance loan shopping may not sound as fun as shopping for a car — until you see the thousands of dollars your research can potentially save you! Still, time is precious. Why not fast-track your refinance loan education by taking some tips from a pro?

Tip #1: Know what you want your refinance loan to accomplish

For example, do you want to…

  • Lock in the lowest possible rate for the longest period of time?
  • Lock in the lowest monthly payment for the next few years?
  • Get the most cash out from available home equity?
  • Minimize interest expense and maximize equity build-up?
  • Consolidate high-rate, non-tax-deductible consumer debt?
  • Add a home equity line of credit for unexpected expenses or opportunities?

These are just a few of the possible goals you may have. And for each one, a different loan may be best-suited to do the job.

Tip #2: Review your whole financial picture, not just a refinance loan

Most mortgage professionals understand the multiple uses of refinance loans, and step back to look at the whole picture before they jump at a pretty interest rate. For example:

  • Do I have enough equity to pay off other debts and lower overall monthly payments?*
  • Are there home repairs or renovations I can finance at low first mortgage rates?
  • Is there a child who may need cash for college funds soon?
  • Is there need for a business, investment property or vacation loan on the horizon?

Tapping your available equity when you refinance may be the most cost-effective solution to many of these scenarios—and more.

Tip #3: Work with a refinance loan expert who puts their expertise to work for you

Mortgage pros either handle their own refinance loans, or hand-pick the person who does. That’s because they know who holds the key to a good experience. It’s the loan consultant who basically quarterbacks the financing transaction. It may be a good idea to find one who will:

  • Share what they know about interest rates, loan options, rate locks, hidden costs and the potential trade-offs between options.
  • Run the numbers to help you make decisions that improve your bottom line.
  • Treat your loan like it’s their own—and has the satisfied customers to prove it! Check out my proof by reading my customer testimonials!

*Refinancing or taking out a home equity loan or line of credit may increase the total number of monthly payments and the total amount paid when compared to your current situation. Loan consolidation may result in an LTV for which mortgage insurance would be required. Many of the ideas in today’s posting came from  

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