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Information About Options on Refinance

Is it better to refinance your home from a bank or a refinance company?

Hello is it better to refinance your home from a bank or a refinance company?

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Bill's Answer
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I think what you mean in your question, is whether to refinance through a bank directly, or go through a broker. It doesn't matter much whether you use a broker or a bank. You can get a good deal with either one. The important thing is whether you get a good rate and pay fair closing costs. The majority of people find that they get better deals with mortgage brokers.

From the consumer's standpoint, there's not a whole lot of difference between a mortgage broker and a mortgage loan officer for a bank. Both of them describe the various loan types that are available and help the borrower choose one, collect the application and supporting paperwork, and keep in contact with the borrower until closing day.

The main difference behind the scenes is that a mortgage bank lends the bank's own money. The loan officer's employer, the bank, decides whether to underwrite the loan and at what rate and terms. A broker doesn't lend his or her company's money. The broker introduces the borrower to a lender and does much of the paperwork, but the lender decides whether to underwrite the loan and at what rate and terms. The broker doesn't make those decisions.

The first recommendation I make to anyone obtaining credit, such as a refinance loan, is to shop around with several different lenders to find the best deal available. Keep in mind that certain types of mortgages use a teaser rate, usually charged for the first two to five years of the loan. In order to analyze what your mortgage will truly cost, you need to analyze what your interest rate will be once your initial rate expires.

If you want an introduction to pre-screened mortgage lenders, Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the loan page and find a loan that meets your needs at: Mortgage Refinance Quote

As you begin shopping for a loan, I encourage you to read up about predatory lending practices on our website.

Common techniques used by predatory lenders include demanding more fees at closing than originally estimated, over-appraising a home to increase the amount of the loan, and many other deceptive practices. If you have good credit, you have less to worry about than borrowers with credit problems, but you should still watch for questionable practices.

No matter what your credit situation or the type of loan you intend to borrow, the key to making sure you obtain the best loan available is to shop around with different brokers and lenders. Listen carefully to the terms being offered by each lender, take notes, and compare the available loans side-by-side. Once you have selected a loan, make sure that the amount of fees and interest you agree to at closing are close to the estimate provided when you first inquired about the loan. If a lender tries to force you into a deal you feel uncomfortable about, feel free to walk away and take your business elsewhere.

To learn more about home refinance loans, I encourage you to visit the Bills.com Home Refinance Resources page, where you will find a wealth of information about home refinance loans and the options available to consumers. Also, if you submit your contact information to the Bills.com Savings Center at the top of the page, we can have several pre-screened mortgage brokers contact you to discuss the loan options available to you.

I wish you the best of luck in finding a refinance loan that meets your needs. I hope that the information I have provided will help you Find. Learn. Save.

Best,

Bill

www.Bills.com/

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