Mortgage Refinance Pay Less Lender Fees

As a homeowner looking to refinance your current mortgage or cash out equity in your home, one of your primary goals should be to avoid paying excessive fees. Mortgage lenders fees can rob you of any benefit you might seek from refinancing or cashing out equity. Here is what you need to know to get started.

Mortgage lenders love charging fees. If you are not careful, these fees can easily add up to thousands of dollars in charges you have no need to pay. Mortgage lenders and brokers are inherently greedy; because of this you need to shop around for the best deal on your new mortgage.

Make sure your lender gives you a good faith estimate that includes all fees. The Annual Percentage Rate found on this estimate factors in the interest rate, closing costs and any other fees you will required to pay. This Annual Percentage Rate is a useful figure to compare when shopping fro a mortgage. Make sure there are prepayment penalties for early repayment or other hidden fees buried in the fine print.

Lender fees are always subject to negotiation. The mortgage industry is fiercely competitive; as a homeowner you are truly in the drivers seat when it comes to demanding better service from your mortgage lender.

When you are shopping for a mortgage lender beware loan offers with unusually low interest rates. These discount rates are only valid for the introductory period. At the end of this introductory period the lender will reset your payment to the actual interest rate; these loans often carry much higher interest rates than normal mortgage loans. Gimmicky loans often come with heavy prepayment penalties, balloon payments, and other terms indicative of predatory lending practices. Shopping from a variety of lenders and brokers will allow you to choose terms that are more favorable. You will be able to compare fees and avoid predatory lenders.

If you are refinancing your mortgage to get money back from your equity you should also consider home equity loans and 2nd mortgages when shopping for the best deal. Sometimes these other loan options may carry better interest rates and lower fees if you can find a good deal. Home equity loans can be repaid quickly which will save you money in the long run. To learn more about saving money and avoiding common mortgage mistakes, sign up for a free mortgage guidebook.

Louie Latour is a mortgage professional and the owner of RefiAdvisor.com, a mortgage resource site offering a free gift for homeowners: "Mortgage Refinance - What You Need to Know." This guidebook helps homeowners avoid common mortgage mistakes and predatory lending practices.

See Also:

Online Mortgage in UK - Introducing the Best Mortgage Plan Across UK
Add the term online and it will open for you an exhaustive assortment of opportunities. Add online to mortgage and it will have the same effect. So many people want to get mortgage programme and get with it fast. The online mortgage in UK indisputably takes lesser time and simplifies the entire ... more...

Mortgage Glossary - A Glossary of Mortgage Terms You Should Know
Acceleration Clause A clause in a mortgage defining that the entire outstanding balance can become due and payable should mortgage default occur. If the entire balance is not paid, the property will be foreclosed.Adjustable Rate Mortgage (ARM) Mortgage with interest rates that may be adjusted by ... more...

Lowest Mortgage Rates UK Lowering the Cost of Mortgage
Mortgage is the most widespread industry that offered to loan borrowers with real estate as collateral. Mortgage has so many innovations and opportunities that a loan borrower can exploit them for their own benefit. You must have heard and read it elsewhere that mortgage rates are at an all time ... more...

Types of Loans
Loan Types What types of loans are available to me? There are many different types of mortgage offered to consumers. Some of the most popular mortgage broker are the FHA Home Loan (Federal Housing Administration) and the VA Loan . Because the FHA mortgage and VA mortgage are guaranteed by the ... more...