There are good mortgage refinancing deals today – see how to get the best deal. (iStock)
Interest rates continue to fall throughout the year as economic policymakers cut rates in the midst of an economic crisis fueled by a pandemic.
Undoubtedly, the pandemic has generated discouraging news on many fronts, as millions of Americans are unemployed or see their livelihoods hindered by a deteriorating economy and strict government blocking policies.
A bright spot? Mortgage rates, which fell over the course of 2020 and opened the door to robust refinancing deals for homeowners in the United States.
“It’s no mystery why interest rates are so low,” said Christopher Popkin, a real estate agent at Grace Properties in Absecon, New Jersey. “The Federal Reserve cuts rates to stimulate economic growth, as low interest rates mean that consumers are more attracted to buying houses, while still leaving money in the buyer’s pocket.
“Traditionally, this happens when the economy is weak,” added Popkin. “Lowering interest rates encourages home buyers to buy, refinance and invest.”
Due to the pandemic, the Federal Reserve was quick to cut rates in March, when investors began to make safer investments, such as treasury bills. “Last year, we expected interest rates of around 3.25% to 4%,” said Ben Schandelson, the originator of the loan from MJS Financial LLC in Boca Raton, Florida. “Now, we are seeing medium to high range mortgage rates of 2%. “
If you are considering refinancing loans, visit an online marketplace like Credible to see current refinancing rates or to withdraw money from your home to pay off high-interest debt.
Getting the best mortgage refinancing deal
How can mortgage refinancing borrowers get the best deal on a mortgage loan at the best rate? The loan specialists have some ideas for borrowers.
1. Expand your search
Schandelson recommends talking to several lenders and brokers to find the best rates and terms. “Some creditors may grant a valuation exemption or require only one month of assets,” he said. “Borrowers should know that many creditors can withdraw their credit before offering a fee agreement. This can result in several difficult credit pulls that can hurt your credit. “
To get the lowest possible rate, look at different mortgage options, including adjustable rate mortgages (ARMs), and always try to get rate quotes from at least three lenders.
“Yes, being pre-approved for a mortgage will require a difficult credit investigation that will appear on your record,” said Polina Ryshakov, director of valuation at Sundae, a residential real estate market. “But it only hurts your credit rating once, if you make multiple loan inquiries at the same time.”
Explore all mortgage refinancing options by visiting Credible to compare rates and lenders. There you can compare the pre-qualified rates of several lenders in just three minutes.
2. Check your mortgage lender
Before signing on the dotted line, be sure to fully examine your mortgage lender. “Take a look at their online valuations,” said April Macowicz, a broker at Big Block Realty in Lompoc, California. “In particular, see if they have a history of closing loans on time and offer repayment incentives. Check your customer service rates and response times. These are some of the most important questions you can ask when looking at mortgage lenders. “
Use Credible’s free online tool to research different mortgage refinance lenders and see what your loan options are
3. Make sure your creditor moves quickly
Mortgage refinancing borrowers should ask a potential lender how long it takes to process and approve their loan, and ask whether the lender will block his mortgage refinancing fee at the time of application.
“Many consumers are unaware that most lenders are late due to the large volume of loan applications and cannot obtain loans through the process quickly,” said Paul Buege, president of Inlanta Mortgage, a financial institution based in Pewaukee, Wisconsin . “Consumers must find a lender who is willing to lock in a loan rate on the application and can strongly confirm that they can close a purchase loan in 30 days or less and a refinancing transaction in less than 45 days. “
Click here to learn more about each type of loan and how to guarantee a lower interest rate today.
4. Don’t buy based only on interest rates
Borrowers should know that the lender with the cheapest mortgage rate may not be the cheapest, since things like fees, points and other costs are included in a mortgage refinancing deal. “Do your homework and you’ll get the best deal possible – being polite is your safest bet,” said Popkin.
Make sure to use a mortgage refinancing calculator to get the best mortgage refinancing deal.
5. Use your advantage
Popkin recommends comparing all of your lender’s terms, and the best way to do that is with a list of “pros and cons”.
“If the lender’s terms are not where you want them, show them your other options and negotiate,” he said. “Let them combine these points, rates and fees competitively to get the best mortgage refinancing result.”
Visit Credible to get in touch with an experienced credit officer and get answers to your mortgage questions.