Mortgage Refinancing - 3 Ways to Find the Lowest Interest Rate Refinance
The better your interest rate when mortgage refinancing, the lower your monthly payment amount will be. You can improve the interest rate you receive by doing your homework before applying. To qualify for the lowest interest rate, follow these three steps when you apply for mortgage refinancing.
I. Refinance All of Your Mortgage Loans
Refinancing all of the loans secured by your home will ensure you qualify for the most competitive interest rate. Carrying a home equity line of credit or 2nd mortgage increases the level of risk you pose for a new lender and will raise your interest rate. By doing your homework and researching mortgage lenders you will be able to choose the best loan for your financial situation. Qualifying for an interest rate .25% better will save you thousands of dollars over the course of your mortgage.
II. Avoid Borrowing Against Your Equity
Cashing out equity in your home when mortgage refinancing will raise the interest rate you qualify for. The more equity you own in your home, the better interest rates you will receive from lenders. If you need to borrow against the equity in your home consider taking out a home equity loan after mortgage refinancing. By holding off on your home equity loan you will not receive a higher interest rate on the entire balance of your loan.
III. Negotiate for a Better Interest Rate
When refinancing you always have the option of reducing your interest rate by paying the lender points. Before committing to paying this fee you should determine if the lower interest rate will allow you to recoup this expense. It can take as long as seven years to recoup the expense of paying points. You should perform a cost/savings analysis like the one explained in our refinancing guidebook to determine if paying points is in your best interest.
You can learn more about comparison shopping for the best mortgage and qualifying for the lowest interest rate by registering for a free mortgage guidebook.
To get your free mortgage guidebook visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.
Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com
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