Refinance mortgage lenders can help you with various different aspects of borrowing. Some lenders in the USA may specialize in prime loans while others may specialize in sub-prime loans and there may even be some who specialize in both. Even financial companies will differ from each other depending on the way in which they structure their fees and rates. So you see all it takes is a little careful research and you will be able to get the lowest rates for your mortgage refinance loan.
If you have an excellent credit score (which means it is over 650) then it is in your best interests to get a prime loan. Most of the traditional finance companies like credit unions and banks offer such loans. But there are even many mortgage companies which offer this type of financing.
But if you have a poor credit score, it doesn't mean you aren't eligible for refinance mortgage loans. It's just that you will only get sub-prime loans. These loans have easier requirements which means that you can even apply for them if you have recently filed for bankruptcy or foreclosure on other loans. And if you shop around properly, you can even get a loan with a sub-prime rate that is just 1 % higher than prime lending rates.
When it comes to refinancing your loans, it is very important for you to match the tenure of your loan with financial goals you hope to achieve. This will allow you to save the maximum amount of money. For example, if you are looking to move out of your current home in the next couple of years then it obviously wouldn't make sense for you to pay a huge chunk of money upfront just so that you get a lower rate of interest in the long run. You just won't get enough time to start saving money this way. It would make a lot more sense for you, if you could keep your closing rates as low as possible and pay the higher rates of interest for the first few months instead.
When it comes to making a decision, you should only do so on the basis of loan quotations. Search for some of the best lenders in your area and approach all of them for a quotation before making any decisions. Go through all the offers you receive and carefully compare interest rates, closing costs & APR's. See how all of these numbers are going to affect your budget in the long run and make a choice only after you are satisfied with the numbers.
If you have an excellent credit score (which means it is over 650) then it is in your best interests to get a prime loan. Most of the traditional finance companies like credit unions and banks offer such loans. But there are even many mortgage companies which offer this type of financing.
But if you have a poor credit score, it doesn't mean you aren't eligible for refinance mortgage loans. It's just that you will only get sub-prime loans. These loans have easier requirements which means that you can even apply for them if you have recently filed for bankruptcy or foreclosure on other loans. And if you shop around properly, you can even get a loan with a sub-prime rate that is just 1 % higher than prime lending rates.
When it comes to refinancing your loans, it is very important for you to match the tenure of your loan with financial goals you hope to achieve. This will allow you to save the maximum amount of money. For example, if you are looking to move out of your current home in the next couple of years then it obviously wouldn't make sense for you to pay a huge chunk of money upfront just so that you get a lower rate of interest in the long run. You just won't get enough time to start saving money this way. It would make a lot more sense for you, if you could keep your closing rates as low as possible and pay the higher rates of interest for the first few months instead.
When it comes to making a decision, you should only do so on the basis of loan quotations. Search for some of the best lenders in your area and approach all of them for a quotation before making any decisions. Go through all the offers you receive and carefully compare interest rates, closing costs & APR's. See how all of these numbers are going to affect your budget in the long run and make a choice only after you are satisfied with the numbers.