The
Answer
The answer is no and here’s why.
Chances are, if you have begun to do any research into mortgage companies and
refinancing, then you have seen an ad or page link on Google advertising
'Lowest Rates,’ 'Best Rates,' etc.
While you may not have pondered on
it for long, chances are you came to the conclusion in which it seems every
mortgage company claims to have the lowest and best rates in the business.
While you do want a lower interest rate, one thing that you should keep in mind
is that, if it sounds too good to be true, then it probably is.
There is always a catch and nothing
in this world is free. Just because the ad says they offer the lowest interest
rates doesn't mean they actually do. While this may appear to be false
advertising, it is really just clever advertising designed to reel you in.
A few things you need to remember is
that, with many businesses, they will always have their welfare in mind. When a
company truly goes above and beyond for you, they really are handling things
right and professionally. However, with so many companies out there, how do you
weed out the ones that care more about their cash flow then their customers?
What
to Look for When Refinancing
When you have made the financial
decision to refinance your mortgage, don't just go with the first company you
come across. Instead, let them know you are inquiring about interest rates and
have every intention of shopping around.
At this point, they will either make
you the true best deal they can or they will give you some obscenely low
promotional rate. As tempting as it may be to take them up on it, don't.
Promotional rates almost always expire at some point and then you will find
yourself locked into an obscenely high new rate to pay.
A few other things to watch out for
is don't work with a lender that charges an application fee as many companies
no longer add this fee to the refinancing process. Negotiate lower
origination/activation fees as these fees are not static and can be lowered.
Finally, while saving $20 a month in exchange for a thirty-year loan might
sound appealing, it's not a good idea. Better to make sure you have a refinance
mortgage loan that fits your unique needs.
Now comes probably the most
important question: what is the most important factor when refinancing? The
company that you go with as it is not them who get to pick and choose -- it's
you. Be sure to go with a knowledgeable
company that puts your needs first and considers your mortgage loan refinance
the most important thing over trying to do a too-good-to-be-true deal!
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