{"id":1148,"date":"2021-06-12T13:17:48","date_gmt":"2021-06-12T13:17:48","guid":{"rendered":"http:\/\/www.mikeclover.com\/blog\/?p=1148"},"modified":"2021-06-12T13:17:48","modified_gmt":"2021-06-12T13:17:48","slug":"refinancing-which-lender-should-you-choose","status":"publish","type":"post","link":"https:\/\/www.mikeclover.com\/blog\/2021\/06\/12\/refinancing-which-lender-should-you-choose\/","title":{"rendered":"Refinancing: Which lender should you choose?"},"content":{"rendered":"

\"better-mortgage-rates-picture-id531933608\"<\/a><\/p>\n

If you\u2019ve been watching interest rates coming down and thinking about a refinance, you may be wondering whether to go back to your current lender or look around for a new one.<\/p>\n

The beauty of refinancing with your current lender is that you probably won\u2019t need to jump through so many hoops to get the job done. That being the case, you\u2019ll probably get it done faster than you would if you started over. You might also not be required to pay for an appraisal, unless you\u2019re asking for cash out.<\/p>\n

In addition, your current lender might offer lower fees, just to keep your business. Then again, some companies only offer the best deals to new customers. It\u2019s wise not to assume anything.<\/p>\n

In spite of the convenience, it\u2019s a good idea to shop for your refinance lender. <\/strong><\/p>\n

First, do check to see what your current lender will offer. Look at the interest rate, the points (if any), the closing costs, the repayment terms, and the documentation required. Get a written good faith estimate, so you can compare offerings point by point.<\/p>\n

Closing costs on a home mortgage loan can range between 2% and 6% of the loan amount. On a $250,000 refinance, that\u2019s a $10,000 spread, so it\u2019s well worth your time to go shopping.<\/p>\n

With your current lender\u2019s information in hand, check with one or two other lenders. <\/strong><\/p>\n

Ask each for a good faith estimate, and ask what documentation will be required. Will they need a new appraisal if they refinance the current amount, or only if you want cash out?<\/p>\n

Note that a lender won\u2019t give you an absolute rate and terms unless you fill out an application and they have your documentation, so if saving time is your priority and your current lender makes an attractive offer, you may choose to stay with them.<\/p>\n

Also note: Lenders\u2019 widely advertised rates are generally the best they have to offer. Those rates and terms are reserved for those with excellent credit, low to debt to income ratios, and steady employment.<\/p>\n

If you like your current lender but someone else offers a better rate and terms\u2026<\/strong><\/p>\n

Contact your current lender to see if they\u2019ll match the offer you found elsewhere. If you\u2019ve been a good customer, they might be willing.<\/p>\n

If you refinance your mortgage loan with a new lender, you don\u2019t have to contact your current lender. <\/strong><\/p>\n

Your new lender will take care of paying off the previous lender as part of your loan closing. All you\u2019ll need to do is give your new lender your loan number, so they can request the payoff.<\/p>\n

Before you decide to refinance\u2026<\/strong><\/p>\n

Compare the cost of the new loan to the dollars you\u2019ll save each month. Then calculate how many months it will take to \u201crepay\u201d yourself the cost of the loan. If you plan to move within a year or two, it may not be worth the effort. If you plan to stay indefinitely, it probably is.<\/p>\n

\"mike-clover-group-email-signature-muy-grande\"<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

If you\u2019ve been watching interest rates coming down and thinking about a refinance, you may be wondering whether to go back to your current lender or look around for a new one. The beauty of refinancing with your current lender … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/posts\/1148"}],"collection":[{"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/comments?post=1148"}],"version-history":[{"count":1,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/posts\/1148\/revisions"}],"predecessor-version":[{"id":1149,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/posts\/1148\/revisions\/1149"}],"wp:attachment":[{"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/media?parent=1148"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/categories?post=1148"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/tags?post=1148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}