title:Deciding Upon a Refinance Lender author:John Mussi source_url:http://www.articlecity.com/articles/business_and_finance/article_5588.shtml date_saved:2007-07-25 12:30:07 category:business_and_finance article:

Finding a good lender to refinance your mortgage can be almost as important a decision as the actual mortgage you choose. In order to make a wise selection of a refinancing lender you should make sure that you do the following four things.
Know the objective of your mortgage refinance
Do you want to lower your current interest rate? Refinancing your mortgage can be profitable if your current mortgage is 2% higher than the prevailing rates. You can find out the prevailing rates by checking with your current lender or any bank. Newspapers will also print the daily rates.
Moving from an adjustable rate mortgage to a fixed rate mortgage can save you money if you time it well. When mortgage rates start creeping up, consider looking for a refinance lender.
The mortgage refinance lender you pick will want to know your reason for refinancing to aid in the process of finding the best mortgage product for you. You will also want to be aware of your credit score and the terms of your current mortgage.
Know the different types of refinance lenders and the different types of refinance products available
Just like when you originally financed your home’s mortgage, there are many lenders available for refinancing: Banks, credit unions, mortgage companies, or online lenders are just a few of your options. There are also brokers who will find a variety of lenders for you. You should be aware, however, that unless specifically contracted to do so a mortgage broker does not have to find the mortgage refinance package that might be the best for you.
Refresh your knowledge of the mortgage financing vocabulary. Be fluent with terms such as interest rate, point and prepayment penalties. Also, most newspapers publish a daily listing of current interest rates for different types of mortgages. Become familiar with these listings and check them on a daily basis.
Shop around and find several different lenders to refinance your mortgage
The market for refinancing mortgages has become so crowded and competitive that it is easy to find several lenders to compare. The newspaper and the yellow pages are also good places to start. If you are comfortable online, the Internet is an excellent resource. There are many services online which will perform a preliminary search for a lender. Your current mortgage lender should also be included in this group.
Negotiate the mortgage refinance loan that suits your needs
Generally, the compensation a lender makes on refinancing a mortgage is dependent on the terms of the mortgage so it is up to you to make sure that the loan received is the most advantageous for you.
You might want to investigate mortgage refinance lenders who offer no closing cost loans or free appraisals. It is important to make sure that you are comparing like products. To do this, have your lender present proposals in writing and require ample time to compare the different offers.
Compare the features of each loan. Some elements to compare are the type of loan, interest rate, points, prepayment penalties, and closing costs. Check the rate you are being offered against the rates from the most current newspaper listings. The more organized, thorough and knowledgeable you are, the better your decision will be.
Deciding to refinance your mortgage is an important choice that should not be taken lightly. Know why you are doing it. Know the possibilities for refinancing lenders and products that are available. Be willing to shop for the best lender and to negotiate a beneficial deal. If you follow these steps, finding a good mortgage refinance lender will be much easier.

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