Question by johnmonroe: im interested in refinancing my home. i always get tons of mail offering such. what is the best way?
im not sure if the mortgage companies are better or the banks?everytime i tried to call them, they are very eager to get my financial details which i dont mind, but giving out my social security on the phone has always been an issue to me. is it safe? which gives better rates? i need serious answers please.
when you are trying to get the best rate, you try to go to different credit companies. does it affect your credit rating, since they inquire your credit history?
Best answer:
Answer by Screaming Eagle
The best way is to not refinance.
They are sending you ads for a reason, they make more money, and you pay more money if you refinance.
There is an exception, if you refinance and get an interest rate at least 2 points less than you had before, and refinance for a shorter term, so you end up saving money.
Don’t give out your social security number over the phone.
What do you think? Answer below!
if you’ve done all your dealings (checking, savings, investing, other loans) with your bank and over several years they will give you a lower rate….ask them first, go in person.
Do you have a real estate agent you know and can trust? Then ask them who they deal with.
A mortgage loan company who has been in business a long time and who is part of your chamber of commerce is probably your best bet (rather than choosing one that is a fly by night)….again, set an appointment and go talk with them.
Each place you inquire (and they usually tell you they want to talk figures and they hurry and pull your credit report whether or not you want to deal with them) that notation goes on your credit report. If you get a few of those then the next place you go to will figure you were turned down at all those places and won’t even talk with you.
Ditto what Eagle said. Sure they are going to be anxious as new loans = income for them. A lot depends on your motivation for a refi. Are you trying to pull $$$ out of equity for down on another piece of real estate, home improvement or other reason? Or will you be refinancing the same $$$ that your mortgage is currently? If you purchased in the last 5 – 7 years the rates now are likely inferior to what your current loan is. If you are trying to get out from under an ARM that is bleeding you now to get a fixed loan, or can refi @ at least 1.5 to 2 points less than your current loan, the idea is sound. Go to a loan officer at the financial institution you normally bank with and learn what they have to offer. Compare that to what a credit union or mortgage company (not broker) such as Wells Fargo or Citibank offers and decide from there. After all your “home bank” already has your personal information. Don’t give that on a whim!
Use this resource
http://goaddr.com/8rt
to find out what is available on the market at the moment. It saves your credit report being pulled every now & then.
Refinancing and using the equity in your home can be a good idea if it will meet your goals and objectives of doing so. You need to find a trusted mortgage advisor who knows the business and will have your best interest at heart. What you are sent in the mail is made to do one thing — get you to call them. Often times they cannot deliver on what they send you. The flyer’s do not consider your financial situation only rates. You need good direction so you can make a wise decision for you and your situation.
This site has many free reports that will most likely answer most of your questions — http://www.paynotaxesforlife.com
Yeah be careful with the SS number. In general brokers and banks are the same except brokers have more restrictions and need to be more transparent. So that’s better actually.
If you go here you can get quotes from competing brokers/lenders so you can shop for the best rate/package.
http://loans.savingslife.com
The site only asks for basic info about youre current home and loan. There are tools for you to estimate your current home value to give you a better idea of the equity you could possibly unlock.
No credit check will be done. And up to a maximum of 4 competing lenders will contact you. They will not spam you with junk mail or call incessantly which is always a plus.
Good luck with your refinance!
to give you more accurate answer what can be done for you if you want to refinance your home of course bank or mortgage company will ask you some personal info and in order to do this they want to see your credit report. if you ready to refinance , just go and talk to somebody and if they will check your credit- take copy with you and you can talk with different lenders for comparison. in most cases if you will deal with mortgage broker they will only once check your credit- if they will submit your loan application with any bank, the bank will take their credit . credit report is valid for 30 days and even you will check your credit a couple times in this time frame for mortgage purpose- it will count like one inquires. you will not know who will give you the best deal if you don’t go and shop around.
I found lots of good information on Mortgages here.
No it is NOT safe to give your SSN. They can run a credit check, which can damage your credit score. Also, banks are better than mortgage companies because there are no “middle men”. You get the best deal through them. Another thing is make sure you get a locked rate and not adjustable, or else your mortgage payment will sky rocket up in a matter of months. My sisters went from $975 to $1,190 in 5 months. Definitely shop around with out your ssn, unless you feel it neccesary.
Your best bet would be your bank are credit union.But if you have good percentage rates stay with that.
To refinance there is fees involved.