Get Best Mortgage Refinance Rates

Several factors go into selecting the best mortgage refinance rates for you. Everybody needs something different because circumstances vary. Regardless of your current situation, you may still be able to get a low refinance rate. There are specific steps you can take to get the best rate for your needs.

Step 1: Determine Why You Want to Refinance

This is important because it will ultimately determine the type of refinancing you should look for. If you have a co-borrower on your mortgage, you should have a discussion with them to make sure you are both on the same page. Many people want to refinance so they can pay off their mortgage sooner and prepare for their retirement years. Establishing your goals is the first step in making a good refinancing decision. You should also have a clear picture of your financial health at this point.

Step 2: Ascertain Your Risk Tolerance

Adjustable-rate mortgages are not for everyone. However, if you have a high tolerance for risk you might want to consider this type of mortgage. You should be financially secure at the moment and have a reasonable expectation you will remain so in the future. Homeowners who plan to retire soon may not want to take on the responsibility of an adjustable-rate mortgage.

If you are like most people, you probably prefer a fixed-rate mortgage. This type of mortgage makes it easier to plan for future expenses. You know what to expect and know what your monthly payments are at any given time. These mortgages tend to have higher initial interest rates compared to adjustable-rate mortgages. However, homeowners are willing to accept those rates knowing they can never increase.

Step 3: Shop Around for Refinance Quotes

The easiest way to do this is to use a site like ours. You should talk to several mortgage lenders instead of contacting only one. The recommended number is between three and five different companies. It is not a bad idea to let each lender know you are talking to others – this may increase their desire to get your business! You will want to get multiple refinance options from each lender. Depending on your goals, you can ask for quotes on 30 and 15 year fixed mortgages as well as adjustable-rate options.

Step 4: Compare Loan Programs

Once you have the different scenarios in hand, take your time and carefully review each option. Do not let the lenders pressure you into making a decision. Run through the calculations to make sure you are actually receiving a cost savings. Consider closing costs so you know how long it will take to actually pay off the refinance. Completing these steps will help you get the best mortgage refinance rates. It is important to understand your situation rather than just assuming the lowest mortgage refinance rates are right for you.