Refinancing Tips for Getting the Best Rate
ByIt’s no secret that millions of homeowners have an opportunity to save money with the lowest mortgage refinance rates we’ve seen in fifty years. Low rates and affordable refinance loans are one of the few benefits that consumers have with the sour U.S. economy. We suggest that if you have a mortgage with an interest rate above 5%, that you should speak with a loan officer right away about home mortgage refinancing.
One of the major road blocks for many homeowners has been that mortgage refinancing guidelines are more demanding today than they have been in the past. It’s not surprising that Fox News published an article this week about taking advantage of the lowest refinance rates in history. Most lenders are reporting a significant increase in mortgage refinance loan applications, so you can expect your loan to be in process longer than usual. Fox reported that banks, lenders underwriters and processors have been overwhelmed with the increased volume of refinance applications they have working on since rates fell last week. Refinance lenders that used to ask for 30 days or less to close on a refinance loan now say they need at least 45 days and in some cases 60 days.
- Be ready with income documentation
- Submit your application now
- Compare quotes from multiple lenders
- Be prepared for a lengthy loan process
- Shop mortgage rates
Some lenders, mostly regional and smaller local lenders, are still offering 30-day closing refinances. Borrowers should look beyond the large banks and consider quotes from these lenders before deciding. Michael Becker, mortgage banker at WCS Funding in Lutherville said, “Shop around and always check the pricing,” says Md. Becker continued, “When big lenders get overwhelmed they may raise their rates to slow down applications. Local companies can sometimes offer you services that the big guys can’t. Read the original Fox News Article.
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