If you haven’t noticed, mortgage lenders, brokers, and their agents are hurting right now. They’re looking for any business they can get. They’re not getting it from new business, because no one is buying a house right now. So, mortgage companies are looking for their business from the refinance market. That’s why you shouldn’t settle for anything less than the best refinance situation that is possible. Here are a few things you should look for when picking a lender or broker to refinance your mortgage.

  • No money down. You’re refinancing an existing mortgage. You already put money down on the original mortgage! Don’t get suckered into putting money down for a refinance deal.
  • No Closing Costs. Again, you should only have to pay closing costs on a new purchase, not a refinance.
  • No points or origination fees. Points added to the refinanced loan or any mortgage for that matter, is simply prepaid interest. It’s interest that you pay up front to reduce the overall interest rate. With rates as low as they are right now, you shouldn’t have to pay points or origination fees. Ask for a “par” interest quote.

    • Mortgage lenders and brokers want more business on the books. So, they will be willing to negotiate. You may not be able to find a place that will offer no money down, no closing costs, and no points in a booming housing market. But in a down market like this one, mortgage lenders just want the interest on the loan. Don’t let them take you for more costs that you simply should not have to pay.

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