While refinancing your mortgage may seem like a hassle worth avoiding at all costs, it can actually be a great way of consolidating your monthly expenses, saving money, and tweaking your current arrangement so you’re working with a more competitive interest rate—one that might not have been on offer when you opted into your original mortgage.
Once you’ve decided to go ahead and refinance, you can either consult with the bank affiliated with your mortgage, or you can hire a mortgage broker to land you the best possible borrowing terms.
If you’re considering refinancing, consider the following 4 reasons to work with a mortgage broker:
A variety of lenders at your fingertips
Unlike banks, mortgage brokers are regularly in contact with a wide range of different lenders, making them perfectly positioned to provide you with a sizable list of well-researched options. A good mortgage broker can put together a variety of loan packages based on your specific needs and goals—so maybe you’ll only need to refinance once.
Lenders who operate on a wholesale basis typically only work through mortgage brokers, which means that consumers who haven’t enlisted the help of a broker don’t have access to their special rates or programs. Working with a mortgage broker helps ensure you’re aware of all possible options when refinancing your home.
When it comes down to the brass tacks of structuring a deal, a mortgage broker isn’t privy to the same limitations often found at credit unions and banks. Depending on the terms of a given loan, they can often ‘stretch’ or limit your fees, for instance. A flexible lender usually translates to a more flexible loan, which can be highly advantageous. Bonus: the flexibility factor also applies to any third-party vendors like appraisers and title companies.
Loyalty to a lender is beside the point
Mortgage brokers don’t pledge allegiance to any one particular lender. If you land on a lender that ends up falling short, or you’re unhappy with the package they’ve assembled, your mortgage broker is fully empowered to regroup and look for options that will suit you better. The good thing is, most wholesale lenders know this, and so generally do all they can to keep the mortgage broker (and therefore you, the client) happy.
Before choosing a mortgage broker to help you refinance, be sure to do your homework by conducting a little research on your would-be broker. Search reviews online, be sure they’re properly certified and experienced in their field, and don’t be afraid to ask for references or check up on them with the Better Business Bureau before signing on. As well, since most mortgage brokers receive the majority of their payments by way of fees, you’ll want to understand the limitations of your Good Faith Estimate.
If you’ve found the right mortgage broker, you’re one step closer to reaping the benefits of refinancing. Happy hunting!