Home Mortgage Refinance Loan - How to Find the Best Mortgage Lender

If you are in the process of applying for a home mortgage refinance loan, comparison shopping for the best mortgage company will save you money. Finding the best mortgage company means comparing all aspects of the loan packages and not focusing only on mortgage rates. Here are several tips to help you comparison shop for the best mortgage lender when taking out a home mortgage refinance loan.

Before you begin shopping for a lender you need to determine what type of home mortgage refinance loan you are shopping for. Do you need fixed mortgage rates or adjustable interest rates? Do you need the smallest payment possible or are you trying to pay off the loan as quickly as possible? Your answers to these questions will determine not only the type of interest rate for your mortgage but the duration or term length of the loan. Once you know exactly what you’re looking for in a home mortgage refinance loan you’re ready to begin comparison shopping.

The Internet is an excellent tool for comparing home mortgage refinance loans. You can easily compare mortgage rates from a variety of mortgage companies. When you compare home mortgage refinance loan offers, request a copy of the Good Faith Estimate from each lender you are considering. The Good Faith Estimate will allow you to make a line-by-line comparison of home mortgage refinance loan fees, interest rates, and closing costs. The Annual Percentage Rate published by mortgage lenders is not enough to make an informed decision so always request the Good Faith Estimate before applying.

You can learn more about your home mortgage refinance options, including costly mistakes to avoid by registering for a free mortgage tutorial.

15 Year Mortgages: Build Equity Faster

If your financial goals include building equity in your home, choosing a mortgage with a 15 year term length will help you build equity at a faster rate. Mortgage loans with shorter term lengths come with higher monthly payments; however, you will pay less money to the lender in finance charges. Here are the advantages of choosing a mortgage with a short term length.

If you want to pay off your mortgage as quickly as possible you need to maximize the amount of principle you pay each month and minimize the interest. Mortgage loans are front-loaded with interest so this is not an easy task. You can accomplish this by choosing a mortgage with the shortest term and the lowest interest rate you can qualify for.

Another option for building equity at a faster rate is to make bi-weekly mortgage payments. By splitting your monthly payment in half and paying that amount every two weeks you will make one extra payment each year entirely to equity. Making bi-weekly payments on a 15 year mortgage will allow you to pay off your entire mortgage in just over ten years. To learn more about your mortgage options, including common mistakes to avoid, register for a free mortgage guidebook.