6 tips to refinance your mortgage faster

Hordes of homeowners across the country have decided it’s a great time to shop for a new mortgage, especially one that has lower payments, a lower interest rate or a rate that’s fixed instead of adjustable.

This rush to refinance, which was triggered by historically low interest rates, has swamped lenders and mortgage brokers with fresh loan applications. Here are six tips to make sure your application stays on top of the pile:

1. Be Realistic. Lenders have tightened up loan requirements, so you’ll need a good credit score and at least some equity in your home to refinance. To figure out how much equity you have, subtract the total amount that you owe on all of your existing mortgages from how much you think your home is worth. If your credit is severely impaired or you owe more than the value of your home, you probably won’t be able to refinance right now.

2. Be Patient. Processing all of the paperwork that’s required for a new loan takes time. Be patient while your loan moves through the system. Protect your credit score by paying your bills and making your mortgage payments on time and not taking on any more new debt than you absolutely have to.

3. Be Proactive. Your loan representative should keep in contact with you even if there isn’t any action on your loan. But do your part to keep the lines of communication open as well. If you don’t hear from your loan representative for a few days, pick up the phone and ask for an update. The old adage that the squeaky wheel gets the grease definitely applies in this situation.

4. Be Inquisitive. It’s your responsibility to make sure that you understand the terms of your loan. Ask questions and listen carefully to the answers. Don’t sign your loan documents until you are satisfied with the information and confident that you have made the right decision.

5. Be Prepared. You’ll probably be asked for more information and documentation after you submit your application, but before your loan is approved be prepared to document your income and assets. Answer any questions and fax documentation to your loan representative as soon as possible.

6. Be Ready. After your loan is approved, you’ll need to sign your loan documents and provide a check for any out-of-pocket closing costs. Make sure the funds are available in your account, and be ready to make room in your schedule to read and sign your loan documents as soon as possible.

Mortgage Refinance - Tips to Help You Cut Fees and Costs

Saving money through a mortgage refinance 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.

Refinance Mortgage Loan – Tips on Refinancing Your Home Mortgage

Refinancing your home mortgage can come with some great perks. If you do it with no money out of pocket, you can skip one to three mortgage payments.
You can save money on your payment or pay off your entire mortgage faster when you have better terms.
Here are a few things to pay attention to when you refinance your mortgage loan, to make sure that you don’t overlook anything that you might regret, or that can cause you problems later:

1. Apply for a pre-approval to many different lenders to make sure you are getting the lowest rate possible. When you do this, make sure that with the initial pre-approval application, the lender is not pulling your credit history. You will want to reserve your credit pull for the lender that you are most likely to work with. You can decide that after you have gone through the preliminary pre-approval process with a few lenders.

Each time your credit is pulled, it docks your credit score just a little. If you have too many inquiries, it could keep you from refinancing your mortgage loan with the lowest rate possible. When you pre-apply for home mortgage loans online, most lenders or mortgage service companies will not initially pull your credit. Check for information about this on their website. They will usually tell you whether or not they are going to pull your credit. Also, if on the application you do not give them your social security number, they cannot pull your credit. If, on the application, they ask you to describe your credit, they are probably not pulling your credit.

2. Make sure that your original mortgage does not have a pre-payment penalty or early payoff penalty of any kind. Sometimes people will get into their mortgage with the mortgage having a pre-payment penalty and they will not even know about it. Pre-payment penalties usually range from 6 months to 3 years with a penalty for an early payoff. The penalty is usually about the amount of 6 months worth of your mortgage loan interest, but this varies. You would have to be able to have some significant payment and interest savings on your refinance loan to justify refinancing a mortgage loan with a pre-payment penalty.

3. When evaluating different lender offers, in the mortgage loan pre-approval process, pay closest attention to the interest rates they are offering & the closing costs. These are the two biggest factors that will help you figure out which lender is right for you. If one of these two factors is too high, it could offset the benefit of refinancing for you.

5 Mortgage Refinancing Tips

Homeowners everywhere need to save money. Their has been a lot of talk recently about mortgage refinancing and its potential to save a homeowner a lot of money on their home loan. Mortgage refinancing, depending on your personal finances, can be a good or bad decision. Here, I have included some tips which will help, and could save you a lot of money, should you decide to refinance your home loan:

1)Mortgage Refinancing with Points or without Points
Lowering interest rates should be the ultimate goal of a homeowner who is looking to save money. Homeowners will need to figure out the benefits of paying points up front, versus having a lower interest rate. Depending on what you choose, and how long you plan on living in your home, you need to figure out the benefits taking these factors into consideration.

2)Mortgage Interest Rate Games
Do not be a victim for mortgage lenders who advertise 0% interest rate home loan refinancing. Typically, these mortgage lenders will try to get you into a low interest arm (adjustable rate mortgage) loan, which will inevitably skyrocket in the future, and leave you in a bad financial spot, again.

3)Watch out for hidden fees and costs associated to refinancing your home loan.
If it seems like the new mortgage rate you are able to get is much lower than you thought it would be, there is probably a catch. Make sure to find out how much all associated closing costs and fees are prior to signing and mortgage refinancing deal.

4)Get a “Good Faith Estimate”
A good faith estimate is a document which is a valid quote for a mortgage which is valid for 3 business days. Take this time to carefully review and compare your potential mortgage to other lenders options.

5)Know how long you plan on living in your home.
Sometimes the costs of refinancing a home loan can be outweighed by the savings if a homeowner is not planning on living in the home for an extended length of time. Typically 6 years is when homeowner breaks even and will start to see savings from refinancing a home loan.

Mortgage Refinancing – Help, Advice, and Tips

Mortgage refinancing is a very popular option for a lot of homeowners who are looking to save money. In general refinancing a home loan is easy to do. However, there are some simple tips which can help you save time and money.

Mortgage Lenders
There are all types of mortgage lenders competing for your business today. Some of them do not even have a traditional brick and mortar location, just an internet presence. While all traditional mortgage lenders typically operate the same, the are hardly alike. Look for a mortgage lender who offers low interest rates, low closing costs and fees, and good customer service. That is the winning trifecta needed for a homeowner to have a good refinance.

Homeowners with bad credit should look at sub prime mortgage lenders. While their interest rates are generally higher than a standard refinancing option, they are usually better than a person with bad credit would be able to get through a standard mortgage lender. Sub prime refinancing, while not the best option, may still be beneficial for homeowners in certain financial situations.

Mortgage Loan Types
When refinancing, a homeowner will have a wide variety of loan and rate choices. In general, a fixed rate has a higher interest rate than an ARM (Adjusted rate mortgage) but is often the better financial move to make. Fixed rate home loan offer long term financial stability, and a homeowner with a fixed rate loan will never see an interest rate increase.

Homeowners who are no planning on staying in their home for long or are in other situations may want to opt for an ARM loan. These loan types sometimes offer an introductory fixed rate, sometimes for up to 36 months. Homeowners who think they will be getting a large amount of cash, moving, selling, or who believe their credit will dramatically increase in the future, should think about an ARM loan. Then refinance into a fixed rate mortgage in the future when conditions improve.

3 Mortgage Refinancing Money Saving Tips

With mortgage refinancing becoming much more popular lately, many homeowners do not know what to look for. Many homeowners make a few costly mistakes when they refinance, which can cost them a lot of money. Here are some tips which can help you get the best mortgage refinance possible.

-Know the True Costs and Benefits of Refinancing your Mortgage
When refinancing, lower interest rates are always better. However, sometimes a lower rate comes with increased fees and costs. Many times, mortgage lenders and banks will advertise an ultra low interest rate, but make up for it with their extreme closing costs, fees, or qualifying standards. The best thing you can do is make sure the interest rates do not come with huge fees which would negate any potential savings.

-Know Why You want to Refinance
Are you interested in getting lower interest rates? Want a lower monthly payment? Need to get out of an ARM loan and into a fixed rate mortgage? Want to get some cash from your homes equity? There are many options available for homeowners who want to refinance. You can get a lower interest rate, change the length of your mortgage, of get cash back. All of these options have drawbacks and advantages. Each situation will determine the appropriate mortgage, but make sure you know your options.

-Compare your Options and Different Mortgage Lenders Quotes
Always make sure to comparison shop between different lenders, their options, and their costs. Most of the time, you will get a different quote from different lenders. Everyone charges different fees and costs, and have different requirements to qualify for a lower interest rate. Be sure to get several quotes from potential mortgage lenders, and pick the one which is best suited for you.

3 Mortgage Refinance Tips to Help you Save Money

Mortgage refinancing can be a great thing for a lot of homeowners to do. However, there are some common mistakes which homeowners make that can cost them time, and money. Here are some tips which will help you get approved the first time, and get the best mortgage refinance deal possible:

-Double Check All Documents
Homeowners need to realize that even a little mistake, on your application or credit rating, can carry huge consequences. Always request copies of your credit report, so you can check for errors. Small mistakes can get a homeowner denied, or not let them get the lowest interest rates they can. Also, the application to your lender is important. Always make sure all income and statements made on your refinancing application can be verified. If there are any questions which a lender can not answer, you will get denied.

-Compare Different Lenders and Mortgage Refinancing Options
When refinancing, always be sure to compare different mortgage lenders, and what they are offering you. Mortgage lenders and banks have all different restrictions and terms which can vary drastically. When you comparison shop different mortgage lenders, you are ensuring you get the best deal possible. This is just like shopping for any other large purchase.

-Know Why you want a Mortgage Refinancing
Make sure you have a reasons to refinance your mortgage. Many different reasons, and options exist for all homeowners. Picking the right one for you is crucial. You need to know if you want lower interest rates, smaller loan payments, or cash back from the refinancing. This will make choosing, and figuring out which refinance option is best for you.

Mortgage refinancing is often made to look a lot more difficult than it is. These few tips can dramatically decrease the cost of a home loan refinance.