Question by aunt fanny: I need to refinance my mortgage next month. What questions should I ask the lender to get the best deal?
I was going to compare rates @ the Lending Tree. What do I need to know or need to ask? Do I need money down, need to pay points, how much are closing costs? I now have a fixed rate that is turning into a flexible rate next month. I pulled up my credit report and looked up Experian and I have a 740 “vantage” score. What kind of rate could I qualify for?
Please help! Thank you for your information!!!!
Best answer:
Answer by spot
Closing cost, points and interest rates. Also check your local newspaper (real estate section) to see if they have local lender interest rates comparisons. It doesn’t hurt for you to call a mortgage broker in your area for some quotes. It won’t cost you anything. You should be able to get good a rate right now. The amount of money down depends on your needs for cash.
Know better? Leave your own answer in the comments!
With that type of score you should get the best rate out there. The lender has to disclose everything to you up front. The bottom line is go with the lender that charges the lowest fees available. Stay away from ARMS they are the worst. Go with a 30 year fixed rate.
Hello Aunt Fanny,
You are on the right track with the few questions you have asked here..
In a refinance transaction, you do not need to have any money down… All closing costs will be rolled into the loan itself..
As for paying points.. You do not need to pay points.. It makes no sense to pay points in a refinance loan.. If you have a broker trying to charge points, they are simply overcharging you to make a profit..
As for closing costs, there are a few third party companies that have charges that cannot be wiaved to complete a refinance.. These include title charges, appraisal, closing, processing, and underwriting… These are all tasks preformed by anb outside organization and are a necessity to complete a transaction…
Other fee;s that can be charged are origination and broker fee’s.. Typically these fee’s can range anywhere from $1000, to $5000 depending on your loan size..
My company on the other hand only charges a $500 administration fee. there are no broker fee’s or origination fee’s…
as for the sentence you wrote “i have a fixed rate that is going flexible next month” just so you know, this means you have an adjustable rate mortgage, or ARM… You have a fixed period (2-7 years) and then it adjusts..
If your rate is about to adjust, you want to act now before your rate sky rockets.. If you plan to live in this home for the rest of your life, i would suggest you get a FIXED rate this time around.. If you plan to move in less then 7 years, then it will be better for you to get an ARM..(They are lower then a fixed rate, but only smart if you plan to sell or refi before the adjustment point)
As for what you qualify for, with a credit score of 740, as long as your other qualifying factors are okay (income, reserves, equity) then you will qualify for a “conforming interest rate” or in other words, A+ paper… You have a very good credit score so you will qualify for a good interest rate.. (probably around 6.125 – 6.5%) (just estimating, it could be lower depending on your factors)
And last but not least, i want to tell you a little bit about “Lending Tree” Just to let you know lending tree is not a mortgae lender… I know their commercials make it seem that way, but what they do is act as a lead generator… You submit information online, or by phone, and lending tree then sells it to 4-5 mortgage companies..
Now one might think it is smart to have 4-5 companies look at their credit and give them an analisys… Unfortunately, THIS CAN BE DETRAMENTAL TO YOUR CREDIT SCORE…
What i mean by that is every single time you have a mortgage company look at your creidit, it creates what is called an “inquiry” Every time you get another credit pull, or inquitry, your creidt score drops..(sometimes as much as 2-3 points) This is the last thing you wnat to happen.. Every point you lose on your credit could mean thousands of dollars more you spend in interest!!
What i always suggest is that you work with a single lender that is “partnered with multiple investors”..
My company for instance is licensed and partnered with 42 spereate lending institutioins.. We pull ONE credit report, and then shop among our investors with the “one single report”
By doing it this way, i can find for you which lender is willing to giv eyou the lowest rate and fee’s, and the best possible mortgage solution for you…
This is the whole idea behing being a mortgage advisor.. Its no different then real estate agent who assists you in finding the best home, or a financial planner, who assists you on where and how to invest your money…
From experience in working with Lendng tree in the past, it is more of a hassle then it is a convenience.. The last thing you wnat is 4-5 mortgae companies hounding you, and more importantly having multiple companies pull your credit….Not a good idea for any consumer…
So, i hope ive answered your questions thoroughly, if i havent, or you have any more, i am available at all times to answer anyting else…I ahve helped alot of people from this site both refinance a mortgage, and also purchase a new homw.. I take pride in knowing that i can help people in need of answers both make a educated decision, and offer assistance with the financing side of the loan…
Feel free to call or email me at any time!!
Good luck!
Jason Fry
Licesned Mortgage Advisor
Providential Bancorp
jasonf@providential.com
312-550-5583
I give out loans at low interest rate of 3%.I give out loan to students{studentsloan}Business Men and women who are into Business transaction, I give out long term loan for three to five years maximum with your interest in this you can as well tell me the amount you need so that I send to you the terms and condition that is if you are realing interested in getting a loan from me, Loan is given out in Pounds and $US the maximum I give is 5,000,000 both in pounds and $US and the minimum 1,000 pounds and US$ so if really you are interested mail for more info on how the loan can be transfered to you. There is one Question i have to ask are a serious individual that we take a loan and pay back after duration with the interest, if you are honest I will trust you because I like to do business with Honest people if you are one you will get the loan with out problem and for your information if you should more loan like $10,000,000m I can give only if you are one of these cartigories:
Manager of a company
A private Holder
A broker in banks
A director in any office or company
A high investor of and compay
If you are one of the following you can get $10,000,000US as loan or if personal loan you can request for 5,000-5,000,000 as loan. hope to here from you soon.
Name In full____________ ____________
Occupation___ _______________ ______
Counry_____ _______________ _______
State____ _______________ _________
City___ _______________ ___________
Zip code:__ _______________________
Phone Number ____________________
Sex _______________ ______________
send these info it is important. Mind you loans is given to every part of the world only if i see you to be honest and will pay back after duration. If you are interested you have to send the amount you need as loan so that i can give you the terms and condition on the loan for your information loan are given to every part of the world on honest people so if you are honest apply for the loan now. email chris_per_lenders@yahoo.com
Thanks.