Refinance Home Loans
Refinance home loans are getting to be very competitive
these days. When you are applying for a refinance
home loan you want to be sure to get the best interest
rate you can, you’ll be amazed to see what a
difference a slight change in an interest rate can
make. So we recommend you use our Refinance Loans
site to do just that.
Comparing home loans of different lenders is often
the most difficult part of home loan shopping. Firstly,
it is important to keep in mind that home loan packages
consist of more than interest rates. They consist
of a quoted rate, points and often-other hidden charges.
Points are an up-front fee paid to the lender at closing.
Each point equals one percent of the loan amount.
Points are charged, or paid, to lower or increase
the rate on the loan. Most lenders will allow you
to choose amongst a variety of rate and point combinations
for the same loan product. Therefore, when comparing
rates of different lenders, make sure you compare
also the associated points. Closing costs typically
consist of loan related fees; title and escrow charges,
government recording and transfer charges and can
add thousands of dollars to the cost of your refinance
home loan. When comparing lenders it is important
to compare loan related fees (i.e. the fees which
lenders charge to process, approve and make the refinance
home loan), since the other fees are typically independent
of the lender.
Secondly, when comparing refinance home loans of
different lenders you need to thoroughly investigate
and compare all loan features: maximum LTV, loan insurance
payments (if any), credit and cash reserve requirements,
qualifying ratios, etc. Pay special attention to the
presence of prepayment penalties and the availability
and terms of conversion options.
Thirdly, for each refinance home loan you are comparing
find out the lock-in period, during which the interest
rate and points quoted to you will be guaranteed.
Lock-ins of 30, 45 and 60 days are common. Some lenders
may offer a lock-in for only a short period of time
(15 days, for example). Usually, the longer the lock-in
period, the higher the price of loan. The lock-in
period should be long enough to allow for settlement
before lock-in expires.
Loans UK is a specialist loans site, providing a useful resource for anyone interested in obtaining finance for any purpose.
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