How To Find The Best Lender When Refinancing Your Mortgage

(Author: Wayne Ouellette Sr | Article Views: 15 | Word Count: 434 | Published: May 18th 2008)

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Are you considering refinancing your mortgage loan? Did you know that choosing the wrong kind of lender will cost you thousands of dollars? It makes a difference refinancing with a mortgage broker, bank, or Internet lender; the difference is thousands of dollars in unnecessary interest payments. Here are several tips to help you choose the right mortgage lender when refinancing your home.

What Mortgage Questions Should You Be Asking

Most homeowners focus on choosing the best lender or the lowest mortgage rate when refinancing. After all, isn't shopping for a mortgage just like shopping for a washing machine? You compare rates and closing costs and choose the best offer right? That would be true if you were shopping for kitchen appliance; however, when choosing a lender you're basing your decision on estimates that are guaranteed to change before you close on the loan.

So if asking which lender is best is the wrong question, what should you be asking? If you're focusing on refinancing mortgage rates when choosing a loan you're on the right track. The question you should be asking isn't who the best lender is, but who is the right person to arrange your next home loan. This person needs meet certain criteria in order to be in a position to offer you the loan you want; more on that later.

Who Should You Choose To Originate Your Mortgage?

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

If you want the best mortgage loan you'll need to enlist the help of a mortgage broker; but not just any broker. You need to find a self-employed mortgage broker that owns their own business and does not employ a sales staff. The reason for this is that as the business owner your broke will have the authority to negotiate their commission and will not be splitting it with a salesperson. Why is this important? Because you'll be refinancing your home with a wholesale mortgage rate and only paying a one percent origination fee. Sounds impossible? It's not only possible but it's much easier than you think for anyone that does their homework before shopping for a home loan.

About the Author

Louie Latour specializes in showing homeowners how to find the best mortgage when refinancing. Before you refinance your home loan, make sure you check RefiAdvisor's excellent free video guide to getting the best refinancing mortgage rate here.

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Staff: Edit This Article

1: Secured Loan or Re-mortgage, The Balance of Power

2: How To Find The Best Lender When Refinancing Your Mortgage

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