Practical Tips to Get the Best Rates on Mortgage Refinancing [mortgageinsurance-101.blogspot.com]

Practical Tips to Get the Best Rates on Mortgage Refinancing [mortgageinsurance-101.blogspot.com]

Question by sweet: Describe the advantages and disadvantages of three different institutions of best mortgage rates and terms? "Imagine you want to arrange a mortgage on your first house purchase. You need $ 200,000.00 Find the best rates and terms available from three different type of lenders such as a mortgage broker a major bank and a banking company such as president choice. Describe the advantages and disadvantages of each and choose the best one." Best answer for Describe the advantages and disadvantages of three different institutions of best mortgage rates and terms?:

Answer by Rico
It's not that simple. First you have to decide what type of mortgage, how much you want to put for a down payment, how many points and what your long term goals are. Then you can make the comparison for 3 institutions (apples with apples). Try first Countrywide Mortgage since they are the largest in the U.S. Then compare it to the place you bank. Then maybe the 3rd is online. Then you can line them up and see the best one around.

Answer by Jack Hoff
Compare the APR, which is the note rate with all the variables factored in. The APR was meant to be a way to compare various loan offers.

Answer by amstarlender
sure you can call all around and run your credit scores down to the point no one can help you. find a broker you like and feel comfortable with and have them explain the different programs out there and dont give your SS#.... then decide if this is a managable situation for you payment wise. then call a few lenders and ask them for there rate & cost for a specific loan program and then you can compare APR the lowest APR is the cheapest to you but !!!! beware of switch and bait at closing. if you a ren't happy with what you see at closing ...get up and walk out without signing anything and tell the loan officer you are talking with that you WILL WALK if things change at closing !!!!

Answer by Skip
you can get into all kind of variables in the loan business. What you are attempting to do is almost impossible to do. You are the one getting the loan. Which of the three do you feel comfortable with? Which is charging you less for the loan? Which has the best rate? Can you make the mortgage payments with ease? Did either give you a pre-approval? The reasons it is difficult to tell you about the various mortgages is because one could be charging a processing fee while another is charging a lender's fee. One loan could be a no points no fee loan and this loan is costing you a .125, while the other is charging one point, but you can deduct the point off you income tax at the end of the tax year. So as you can see it boils down to the APR and which ever is the cheapest. One might offer better service. or be closer to where you live. You are not gonna save that much if the difference is .125 or .25. What we are trying to tell you is that without the entire loan amount, interest rate, closing cost we are not able to separate the three. Your best bet is the mortgage broker, he has more underwriters underwriting his loans. He also have more programs, he just might have your major bank and banking company with the president Choice program. I hope this has been of some use to you, good luck. "FIGHT ON"

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You will surely hear bad news about the mortgage industry everyday.  The industry has been suffering from bad press lately.  Issues on sub prime scandals, bailouts, and foreclosures are hugging the mainstream media nowadays.  

However, it is a known fact that the fundamental mortgage system is still sound.  And you have to admit that you can benefit from lower mortgage interest rates especially if you are planning to refinance.  And to take advantage of the situation, you have no choice but to go to your lender in order to explore the possibility of getting a loan.  

Refinancing has always been a good option especially if conditions are favorable for you.  These conditions may include external factors such as the prevailing market interest rates and your current credit score.  If conditions are right, then there is a big chance that you will save thousands of dollars annually in mortgage payments.

 You can also save a lot more in interest payments over the lifetime of your mortgage loan.  

There are instances however that refinancing may not make sense.  To ensure that this option would be favorable for you, it is important to look for the lowest possible refinance rates.  The following tips could greatly help you find a mortgage refinance at the lowest possible rates.  

Get to Know Your Current FICO Score

Everyone has already built his or her own personal financial history.  If you are at least 21 years old, you have probably experienced obtaining a loan, using a credit card, and using store cards to buy from department stores.  It is true that some people are more diligent in paying their loans on time while others are not consistent when facing their financial obligations.  Your personal payment history and other influencing factors primarily define your FICO score.  This is also known as your credit score.  

You have to remember that the majority of lenders today are more concerned about your credit score.  So when a borrower approaches a lender for a loan, the credit score plays a crucial factor.  The lender will evaluate your score whether it is excellent, good, fair, or poor.  Your chances of getting a new loan will be based primarily on how your credit score will be evaluated.  It also determines if you can get a lower mortgage interest rate or not.  

Correct Any Error in Your Credit Report 

When you get your credit report, you must not focus solely on your score.  You have to closely evaluate the report to find any error or discrepancy.  Once you notice a glitch, then you have to immediately fix it to protect your credit rating.  

Shop Around for Different Lenders 

To know the best rates, you have to get at least 3 refinance quotes from three different lenders.  Compare the offers to identify which one provides a better deal.  

Get Quote from Your Lender

Once you get different refinance quotes, your next step is to get a quote from your existing lender to determine if it can give you a much better offer.  

Knowing how to correctly compare various refinance offers is the last step.  Make sure that you are properly evaluating the quotes from lenders.  It is important to get a good grip on closing costs, terms of the loan, and the interest rates. Related Practical Tips to Get the Best Rates on Mortgage Refinancing Topics

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