Existing Low Interest Rates - Ideal For Refinancing Home Mortgage Loans [10to5mortgage.blogspot.com]
Question by deedee: Are the interest rates the same between people who take a new mortgage and those who refinance? I want to take advantage of the decline in intest rates by refinancing my mortgage. When I search online I find a lot of rates quoted for new loans but not much for refinancing. Is it safe to assume the refinancing rates will be similar to the new buyer's rates (with the same terms and credit rating of course)? Thanks. Best answer for Are the interest rates the same between people who take a new mortgage and those who refinance?:
Answer by whitneymagnolia
I would go to a reputable, bricks and mortar (physical location) of a known bank to refi. Part of the mortgage debacle was using anyone and everyone (including the big banks, though) and it is critical to be sure you know who you are dealing with and what you are dealing with! Get a referral and go with someone with a good track record. Also, start with the bank you deal with. They want to keep your business and may not charge closing costs like another lender would. The credit score will determine the "good rate" that sounds low but still depends on credit score.
Answer by Beyounce
It depends on your credit score. If you have paid your mortgage on time. Your present lender will gladly refinance to a lower rate. There are a lot of loan officers that are solely doing refi's if you are in California I can refer you to several people that I deal with. Times are tight and the loan officers are gun shy.
Answer by Tres7
Yes but shopping for interest rates in your market in very important. Most ads that you see are teaser type ads and do not disclose all the service fees that are included. The rate may sound great but the closing cost can get you. Be aware of typical closing cost such as credit report, appraisal, recording fee, title opinion and service fee. But additional expenses can be added....watch out! Find a lender that will give you good financial advice, great rate and closing cost. Good Luck!
Answer by debberu
For someone w/ good credit going to a regular commercial bank, the answer is yes... the rates should be the same. Refinancing has not been going on a whole lot , so many w/ their limited advertising dollars and space are targeting the new home $ $ for now. Good luck!
Answer by Op P
Great question! As a retired Mortgage Banker who has taught thousands of loan officers how to earn incredible incomes, I would love to answer it. There are SO many people hungry for answers to such a great question, that addressing them one at a time is SO ineffective. I have a free report available that anyone can access to get educated about all the "dirty little secrets" of this business and HOW we as a society ended up in such a mess. It bothers me greatly that so many people, young AND old, have been taken advantage of and NEED answers to prosper financially and not become a mortgage victim. If you DON'T get educated BEFORE making a decision, you're next in line to be ripped off. Count on it. I've been posting answers under numerous aliases on Yahoo! because I have to keep creating new accounts to do so. It seems the "establishment" prefers to keep the public in the dark when it comes to exposing the truth about anything which could actually help them avoid catastrophe. When faced with a serious choice about something in your past think about what you should have been made aware of by someone in "authority", but weren't. If you knew what "they" knew, wouldn't you have made a better decision? Whether you're a first time buyer, moving up, refinancing, buying a foreclosure, short sale or trustee sale or auction, you're going to need financing in place. First. Doing it ANY other way is wasting your time and a professional real estate broker won't even LOOK at you or your offer unless your financing is in place. Don't believe me? Try it. If you want to learn the industry from the inside, visit my website. I can't type the internet address here or I'll be creating yet another Yahoo! account. I'll spell it for you. MortgageSelfDefense[dot]com. Type that into your web browser as you would a regular internet address and you'll get there. In addition to the information you'll receive on the site, if you decide to be a free subscriber, you'll receive tips, techniques and advice on regular intervals along with my personal contact information to ask questions. I look forward to helping you. P.S. I'm also a Real Estate Broker in two states (CA & NV) and have been since 1981. Having been so gives me a unique perspective on the industry.
Answer by saeed q
It depends on your loan to value when you want to refi and if it's a straight rate and term or cash out refi. Make sure to price out your loan with your LOCAL banks and mortgage brokers only. A lot people giving advice on here are also looking to give you a loan (its not advice, its advertising), if they are not local to you and you can’t get to them within 1 hour don’t fall for it. They say they are licensed in all 50 states, what does that mean? Which state do you have to look in first if something goes wrong? KEEP IT LOCAL; DON'T GET RIPPED-OFF BY SOMEONE IN WHO KNOWS WHERE WHICH YOU WOULD HAVE NO DIRECT ACCESS TO. Remember Buddha's advice: "Believe nothing, no matter where you read it or who has said it, not even if I have said it, unless it agrees with your own reason and your own common sense." You are the only "expert" you can trust: All brokers, and every other loan officer guru giving advice here with a .com or contact me at the end is "selling" you something (its not advice, its advertising). Don't buy "it."
Refinance mortgage is just the current mortgage is replaced by a superior one. Under any circumstances, an offer all homeowners like to make is swapping for a lower interest rate and monthly payment.
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Especially, if they could get incentives in the form of lower mortgage fees and costs that would make the switch much easier. In competitive mortgage markets, many banks and lenders offer reduced fees. With their negotiating powers, banks are able to get much better prices for services like home appraisal. Some other fees including broker fees may be open to negotiation.
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Low interest rates are definitely the main reason for refinancing. It could not be difficult to list 20 other reasons, but let us concentrate on what matters. Homeowners may have taken their home loans when the rates were higher and their credit score lower.
Combination of lower rate and higher credit score may easily result in reduction of $ 100s per month in their mortgage payments. Homeowners either keep their monthly payments as before and pay their mortgage faster or lower their monthly payments and have more spending money every month or both.Â
It may not be too late for homeowners with not so desirable credit score. These low interest rates may be around for a while. They may improve their credit score to qualify for a better rate before applying for refinance mortgage. To do that, first they need to get their credit score and report and go through them. There are free credit score offers online. It may be wise to subscribe to credit monitoring services for a while to check their progress regularly.
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In low interest rate periods, homeowners prefer fixed rate mortgages.
It would be a very good time to lock in those rates and forget about it for the next 10 to 15 years. Especially, if they are happy with their home and do not plan to move. They may still fix their mortgages even they plan to move. Some lenders offer portable fixed rate deals. That way, if the homeowner decides to move, he can take his mortgage with him to new home.Â
People considering a mortgage in the near future could carry out a quick research online. They can find a website with a mortgage quote system and enter their basic details. Within an hour or so, they would be able to get mortgage rate offers. It is a better option than calling a broker, because they do not need to disclose anything to a third person at this stage. They can still use a broker at a later stage if they prefer.
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