By T Crowley
A mortgage refinance can be a great solution for consumers who want to leverage some of the equity in their home to pay off some debt or complete some home improvement projects. Regardless of your house refinance plans, there is one important thing you should know before securing your loan. That is...you should know how to minimize your home refinance closing costs so you can keep more of your hard earned money. Read the following article to get 4 hot tips for reducing your home refinance closing costs.
1) Get A Good Faith Estimate To Compare Offers (Or Quotes) From Different Lenders Or Brokers
It is good idea to receive different mortgage estimates so you can get an early look on how competitive the lenders or brokers you are working with are from the start. If you submit the same application to several lenders or brokers, and some of the quotes come back much higher than the others, that may be an indication that these lending partners are including some excessive fees that are optional, and that you really do not need to pay. You may be best served not to work with them if you want to save money on your home refinance closing costs.
2) Get Some Background Information on All of the Lending Representatives You Are Working With.
It's important to remember that the lending representatives you work with are going to be focused on getting your business. Although there are some excellent lenders and mortgage brokers available to assist you, there are some that will do just about anything to get your business...including lying, cheating, and fraud. That is why it is so important to do some research, and make sure you are working with an ethical advisor.
Also, when you talk to different lending representatives, it gives you an opportunity to analyze how good the representatives are at answering your questions about the home refinance closing costs that have been quoted. If they are stumbling around trying to justify why their fees are much higher than other quotes you received, it is very possible that they may be inexperienced or untrustworthy, may charge you exorbitant fees, and may even try to bait and switch you to a completely different loan product that is not in your best interest. Although getting background information is a good idea, it is also extremely important that you understand that even though you may receive some great quoted rates or points, until the lender confirms the terms and locks your rates....you can not depend on the quotes.
3) To Minimize Home Refinance Closing Costs...Consider Securing A Zero Point Mortgage Refinance Loan
Points is the term used for the loan origination fee. One point is equal to one percent of your loan amount. So for example: A $200,000 mortgage with a 2 point loan fee, will cost you $4000 If you had a zero point mortgage, on this same $200,000 mortgage you will save $4000.
This can be a great way to reduce your closing costs, but do keep in mind that if you reduce your points, you can expect to pay higher interest rates, as the lenders will need to make a profit from the loan they are providing.
4) Consider Closing Your Loan Late In The Month To Reduce Your Home Refinance Closing Costs
Mortgage Refinance Lenders often collect interest for an entire month at closing.
So if for example, you close on the 27th of the month, and there are only 30 days in the month,the lender would only collect 3 days of interest when you close. This is a great solution to help offset high interest rates.
The bottom line is...to minimize your home refinance closing costs, get competitive quotes from lenders, make sure you get answers to ALL of your questions, and do not commit to working with any lending representative until you feel comfortable that they are working hard to secure the best refinance rates for your needs...not theirs.
Article Source: http://EzineArticles.com/?expert=T_Crowley
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