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Home Mortgages and Refinances
"While seeking home mortgages and refinances it is important to shop wisely to get the best deal possible. While most organizations offer a similar array of products, it is the service that makes the difference. On time service, immediate response systems ...
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Your current lender should be the last lender that you obtain a quote from, but you should definitely contact them when you are thinking of refinancing. Get together quotes from other lenders, and then approach your current lender and ask them to meet, or even better, beat those quotes.
You can also ask them to waive certain settlement costs and other fees involved since you are already an established customer and your lender may have customer retention programs, but you will need leverage before you do this. That leverage should come in the form of quotes from your lenders competitors.
In fact, your lender may opt to just decrease the interest rate you are currently paying, thereby allowing you to avoid settlement costs altogether.
However, there are drawbacks to using your current lender. Your lender already has your business, once you pay the lock-in fee, they have your money too. Since they already have your mortgage, they have no incentive to close the deal in a timely manner. There are also times
when lenders will not quote you the best rate they have, but will quote you a rate that is lower than your current rate.
For instance, if youre at an eight-percent interest rate currently, your lender may offer you 6.5 percent because its significantly lower than your current rate. Normally, that would be great, but if rates are at 5.5 percent, your lender isnt doing you any favors. That is why it is so important to be prepared with quotes from other lenders. It lets you know what rates are available to you, and lets your lender know that youre not going into the situation blind.
A wise decision is to treat your current lender as you would any other lender (see examples at: http://debt-solution.biz ). If they do not come in with the lowest rate or best service, take your business elsewhere. While it is nice to do business with a familiar face, you are not obligated to refinance with them, and if you can save money by going elsewhere, you should do so.
About the Author
Written by Craig Romero/Mortgage Analyst
Discover how to quickly build a minimum of $40,000 worth of home equity and pay your mortgage off in 10 years or less without making biweekly mortgage payments. Visit:
http://debt-solution.biz
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