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Mortgage Refinance - Tips to Help You Cut Fees and Costs
Saving money through a mortgage
refi is more than just finding the lowest interest rates.
You can further cut fees and costs through the structure
of your loan, avoiding PMI, and buying lower interest rates.
Close Credit Card Accounts
Close inactive credit card
accounts to improve your credit score, making you eligible
for lower interest rate loans. You will need to notify
the credit card companies in writing that you wish the
accounts closed on your request.
Next, check your credit report
after 30 days to be sure closed accounts include the comment
“Closed at Customer’s Request.” You want future lenders
to know it was your request and not bad credit that closed
your accounts. Also, take the time to check for any mistakes
in your credit report that could negatively impact your
credit score.
Avoid The Hidden Cost Of PMI
When refinancing a mortgage,
as many as 30% of homeowner’s cash out part or all of their
home’s equity. By investing in home improvements or paying
off credit cards, this can be a smart. But, if you are
borrowing more than 80% of your home’s value, you will
be hit with private mortgage insurance, costing you hundreds
a year.
Pay Points Now
If you are planning to stay
in your home for several years, then you can save money
by paying points for lower interest rates. You pay up front
fees to ensure you have lower interest payments over the
course of your loan. Remember, this only works if you keep
your mortgage for several months.
Choose A Short-Term Loan
Short-term mortgages offer
lower interest rates than long-term mortgages. You save
money by the lower interest rates and shorter payment period.
The trade off is a larger monthly payment, but this option
can save you thousands.
Ask About Fees
Fees are a hidden cost of
many mortgage loans. By law, lenders must disclose fees
within three days of a loan application. Fees can go by
many names like – document prep fees, courier fees, administrative
fees, and more.
When comparing refi options
for your mortgage, request a list of fees from several
lenders. Add these fees with the interest of a loan. With
these figures, you may be surprised that the cheapest loan
didn’t have the lowest interest rate.
Here are our recommended sources for refinance home mortgage lenders online:
| Refinance Companies Online:
-Updated 2010-:
Are you in the UK? Visit Our UK Loans Page: UK Lenders |
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