Just like anything in life, don’t take the first offer you get! This is true when it comes to refinancing your home as well. And especially true as it pertains to your current lender. We will let you in on a little secret…when it comes to lenders, it is very important that they retain their current customers. So keep in mind that your current lender may not offer you a competitive rate immediately.
When you decide to refinance, ask your current lender for the best rate possible. Be sure to do your homework and know what you will be quoted at a different lender as you will likely not be offered the same amount as a new customer would upon them initially signing up. If your current rate is 4.5% you will probably be offered 4% when you call the first time to refinance. However, a new customer may be quoted 3.5% or even 3% as a rate. Make sure you have this information in your back pocket!
We would recommend that you get a quote from a minimum of at least three lenders – maybe even three different lenders other than your current one. And by getting a quote, we would recommend you call the lender and put in all appropriate information – not sure from a piece of mail or e-mail you may have received from a company. For the most part (and this goes with post advertisements) what is advertised is more than likely the ideal situation in order to get people interested. A company needs a great deal of information from you in order to give you an accurate quote. As long as you have the proper information required, obtaining a quote will not take a great deal of time. We cannot stress enough how important it is to obtain multiple quotes – especially before making a final decision.
Also a part of your final decision should include any and all additional fees. These fees include closing cost, annual percentage rate, etc. Take all of the above into consideration when making your decision to refinance.