Looking for the Right Mortgage Refinance Rate? Here are Some Tips

Posted on Feb 28 2018 - 10:48am by Business Day TV

Mortgage rate conceptMortgage refinancing gives you a chance to upgrade your home loan. Typically, it is used to cut monthly payments or change the loan length. Shopping for a mortgage refinance rate in Utah or elsewhere is a tough task that needs preparation and some acute decision-making skills.

Be conservative in choosing a loan term

Most often than not, being conservative allows you to take control of your repayments and the entire loan. Expanding one’s loan term is a common mistake among borrowers. Indeed, it gives you enough advantage in utilizing the loan, but it also traps you in a vicious cycle. Getting a new 15-year fixed term on top of a half-paid 15-year fixed is not a good idea. A shorter loan term, say, 10 years, is recommendable. The lower rate would save more in interest without markedly changing monthly payments.

Take advantage of promotions

Apart from the Fed rate and the varying rates of banks, it is also worthy to look into promotions run my mortgage lenders. Lenders try to attract potential borrowers by sweetening their products through promos. This is a common strategy to grab a piece of the market. Especially in the refinance industry, lenders often provide small discounts. The reduction in the rate may not be much but discounts that shave off a quarter or even half of a point is already significant.

Search for a smart mortgage pro

Whether a newbie or a second-time borrower, it is always a struggle to find the best refinance rate. But having a smart mortgage professional to help you run through the heap of numbers and paperwork, shopping for the right product will potentially be an effortless ride. That mortgage pro should give you real options, not countless teaser rates. Many lenders, banks, and government-backed loan programs can provide a seasoned professional.

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From the product to those that will help you, being wise with options and opportunities along the way is imperative in finding the right refinance rate.