Refinancing in Connecticut
When you refinance your Connecticut home, you want to be sure you get the best deal possible. You need to be sure you are working with a reputable refinance mortgage lender, and you also need to use some extra tips before you start looking around for Connecticut refinancing. Making sure you avoid some beginner refinancing mistakes can save you a lot in the long term.
Avoid Variable Rate Loans
Unless you have to go with an ARM, stay away from them. Most people look for Connecticut refinancing to help lower a mortgage payment, which can occur if you refinance at a rate that is 2 points lower than your current mortgage rate. An adjustable rate refinance mortgage will cause your mortgage payment to go up and down with the prime rate, and may not be the most stable mortgage. However, if you are only going to be in your Connecticut home for a couple years, you may consider an adjustable rate refinance mortgage.
Avoid Paying Points
When you are considering refinancing your Connecticut home, your lender may want you to pay points to get a lower refinancing rate. However, it will take you a year to pay off one point. Instead, you may want to consider not paying points on your refinance mortgage, which is putting money in your lenderÕs pocket, and putting the money toward your equity instead.
Say ÒNoÓ to Bi-Weekly Payments
The new trend in refinance mortgages is to make payments every two weeks. This may seem like a good idea to pay off your Connecticut refinancing loan faster, but in fact you can pay off that loan just as fast by not having to make two payments each month. The reason that some refinance lenders are encouraging people to make bi-weekly payments is that you, in fact, make two extra mortgage payments per year than with traditional monthly payment plans. However, if you are disciplined enough to put that extra money away, you can make those two extra payments each year and designate them to go to the principle on your Connecticut refinance mortgage.
Avoid Hidden Fees
Some Connecticut refinance mortgage lenders will offer you great deals on your refinancing, promising you low fees and low rates. However, when you look through your paperwork, you may find that those low rates are just window dressing. Some of these lenders find ways to make up the loss by hiding fees in your refinance closing costs. They will inflate closing fees or tell you that your application fee is waived, but raise the appraisal fees. Be sure to look closely at any fees before you decide to refinance with that company.
Shop Around
The best way to know if the fees are too high or if you are getting the best refinance rates on your Connecticut home is to look around. There are plenty of licensed Connecticut refinance mortgage brokers, both online and offline, that will allow you to look at different lending companies and products. Take the time to look closely at rates, fees, financial ratings, and more before you actually refinance.
Save serious money on you Connecticut loan. Use the free quote box to the right and let us do the heavy lifting for you. No obligation, just savings!
