Real Estate

Mortgage Refinancing Rates

Story Published on July 16, 2008 ⋅  Email this Story ⋅  Print this Story ⋅ Post a comment ⋅

When refinancing a mortgage loan, homeowners have several options. There are numerous reasons for refinancing an existing mortgage. The past five years have witnessed low mortgage rates. However, low rates will not remain forever. Before interest rates begin to climb, homeowners should take advantage of their refinancing option.

Careful comparison shopping when mortgage refinancing will save you money and many future headaches. Comparing loan offers from a variety of mortgage lenders allows you to choose the mortgage with the most competitive fees, interest rate, and closing costs. When you shop for mortgage offers it is important to request stated income, “no-obligation” quotes so the lenders do not access your credit reports until you are ready to submit the application.

Teaser rates are usually used to promote products that are better for the lender than they are for the homeowner; however, they can be useful in certain situations. If you need short-term financing while you sell your home, a teaser rate could save you money. Make sure the loan does not include a penalty for early repayment as this would eat up your savings with an unnecessary fee.

When you do your homework and research mortgage offers you will better understand the mortgage refinancing process. Understanding mortgage terms, interest rates, and fees will enable to choose the best loan for your financial situation.

To fully understand what you’re getting into with any mortgage loan, carefully read the Good Faith Estimate to find out exactly what you’re paying for mortgage refinancing.

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