The current market for home equity loan refinancing is crowded and very competitive. As a homeowner you probably receive solicitations for loans almost daily via the telephone or the mail or the Internet. Be wary of accepting any of these solicitations without thoroughly investigating them.
Be aware of the fact that a mortgage broker in any loan situation is not automatically working to get you the best deal. You are the person who should take responsibility for making sure that the final loan product is the one you need. The Better business Bureau, the yellow pages, the Internet and references from friends are all good places to start your search for refinancing your loan. Once you have identified several possible sources for refinancing your loan, have the lenders explain the different loan products they offer.
Don't be afraid to ask specific questions and don't be hypnotized by a low interest rate. A low interest rate alone is not sufficient reason to accept a loan proposal. Ask about the term of the loan and the closing costs. Make sure the lender explains any terms you may not fully understand such as points.
Have all proposals submitted in writing. Take the time to compare them and always make sure you are comparing the same types of things. For instance, don't just look at the bottom line number on the closing costs see what each lender is including in the closing costs.
Be alert to potential scams. Don't be intimidated by your refinancing lender into signing anything that isn't absolutely true. Don't sign anything that has blanks or that you haven't read.
Refinancing your loan in order to access your home equity can be a wise financial move. Your home, however, is probably the largest portion of your net worth so proceed with caution and knowledge.
Be aware of the fact that a mortgage broker in any loan situation is not automatically working to get you the best deal. You are the person who should take responsibility for making sure that the final loan product is the one you need. The Better business Bureau, the yellow pages, the Internet and references from friends are all good places to start your search for refinancing your loan. Once you have identified several possible sources for refinancing your loan, have the lenders explain the different loan products they offer.
Don't be afraid to ask specific questions and don't be hypnotized by a low interest rate. A low interest rate alone is not sufficient reason to accept a loan proposal. Ask about the term of the loan and the closing costs. Make sure the lender explains any terms you may not fully understand such as points.
Have all proposals submitted in writing. Take the time to compare them and always make sure you are comparing the same types of things. For instance, don't just look at the bottom line number on the closing costs see what each lender is including in the closing costs.
Be alert to potential scams. Don't be intimidated by your refinancing lender into signing anything that isn't absolutely true. Don't sign anything that has blanks or that you haven't read.
Refinancing your loan in order to access your home equity can be a wise financial move. Your home, however, is probably the largest portion of your net worth so proceed with caution and knowledge.
No comments:
Post a Comment