A simple tip to consider for refinancing your mortgage.
We’ve all heard a friend or neighbor speak about refinancing their home at some enviable interest rate. Does that mean you should rush out and jump through the hoops of a refinance? Not necessarily…
First, refinancing a mortgage doesn’t have to be difficult but don’t kid yourself either. You’ve got to do your homework and ask a lot of questions. Here’s one simple tip to pay attention to in your consideration of refinancing your home. This by no means is the only consideration but it may save you some time.
A borrower should definitely shop around. You can contact banks directly or inquire with a couple of mortgage brokers. A realtor is a great resource for referrals because they’ve seen them in action and have a good feel for how hard the mortgage brokers work for their clients. Just because you bank at ABC Bank doesn’t mean they will have the right mortgage for you. What you need to pay attention to is comparing the APR (Annual Percentage Rate) of each loan instead of the quoted interest rate. This is representative of what the true cost of the loan will be and you really need to save at least a half point to make it worthwhile. As I said, this is not the only determining factor but it’s a quick way to determine if you should proceed investigating the potential of refinancing.
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