Question by ongel: Should I refinance through my mortgage company or where should I go?
Im new to this and I want to lower my interest rate, but not sure if I should go through my mortgage company or look in other places, and how does that work if I go through other places?
What are some companies I should look at when refinancing? Besides my own mortgage company of course?
We are allowed to do a streamline refinance. Now with the current rates, I was told not to go with anyone unless they can offer current rates, and so far I have not been offered that. What do you think? Should i go with what I can or wait to refinance down the road?
Best answer:
Answer by Sharon T
You should get three quotes, one of which is from your existing mortgage company. Ask them for a written quote, which they are required by law to give you without charge. Compare all three and see which is best.
Your present company should be the lowest because they don’t have to charge all the costs over again, but sometimes a new company comes in with a better quote. Make sure your present company knows you are going to shop around.
Know better? Leave your own answer in the comments!
Every time you refinance, it costs you thousands in closing costs, depending on the amount you are refinancing. You typically do not have to pay these amounts up front, the lender will roll them into the loan, but make no mistake, you pay them.
If you are thinking of selling in the next few years, it probably will not pencil for you to refinance, you cannot recoup the closing costs through the better interest rate.
So, if you are planning on staying for awhile, get GFE’s (good faith estimates) from a few lenders and compare apples to apples on the packages you are getting. So many borrowers just look at interest rates and get raked over the coals on closing costs. Ask your lender as well, tell them you are shopping around for a refi, they may make you a sweet deal to stay if you are a good customer.
Finding a mortgage is like shopping around for the best car insurance. You definitely want to look around and get not only Good Faith Estimates on the various places so you know your closing costs, but also make sure you look into their rates, points, etc.
I would personally find a few different places, jot down their rates, conditions, etc. Then look online and check out consumer reviews so you know that lender has good customer service. Keep in mind the value of your time as well, you definitely want a lender that gets back to you right away and goes through the process quickly and smoothly.
For a breakdown of what your closing costs are, check out the article listed in the sources section, it gives you exactly what you are looking to pay at closing, and why it is necessary.
Hope this helps.