When you become a homeowner, one of the things you learned very quickly is to try to get the lowest interest rate possible in your loan. So as a savvy homeowner,  you took advantage of low interest rates to refinance  or to buy your home— and then rates went even lower. Should you refinance ? It’s easy to figure out if it’s worth it if you follow the next steps

1. Contact Your Trusted Loan Consultant  or Lender:  Just like we have the  family doctor or lawyer, you should have a loan consultant or lender that you trust and like . Ask your current loan consultant or lender to give you an  itemized list of all fees and cost for the loan. Sometimes, your current consultant : to keep your business; it may offer you a deal others won”t match.
2. Look beyound at the rate being offered: If after talking to your current lender, you decide to shop around;, make sure you are comparing apples with apples. For example, let say, you call another lender- lender X . Lender X tells you that you will get this amazing rate and sound really good deal!! Make sure that what Lender X is offering is the type of loan that you want. Get a written good faith estimate before taking an offer that looks to good to be true. Compare it to your current lenders estimate and make sure it is the same type of program.
3. Be Specific:  Lenders are in the business of making loan, not saying you money. It is their job to get your business. If you ask” I want the  lowes fixed rate you or lowest payment !”.  Most likely, you will get that, but it might not be the loan that you had in mind. Within  loan programs, you can find 30, 20, 15 , 5, and 1 year fixed loans(just to name a few!). Be very specific with the terms of the loan that you want!! If plan to be in your house for more than 10 years, then you want the lowest payment in a 30 year fixed.  Ask for it and don’t be sucker into taking a loan that will force you to refinance later on and you will have to pay COSTS  AGAIN !!!!!!
4. Check the Numbers:  Let say that to refinance, it will cost you $2,o00 dollars, and doing so will lower your monthly payment by $50, it will take you three years to break even.  After three years, you begin to save. In the meantime, you are just getting back the money you paid to refinance. If you plan to stay in the house for more than 3 years, then  it’s worthwhile. But if you plan to sell within three years, then refinancing is not a good choice.
5. Beware of No Cost Loans :You’re comparing loans; One loan requires thousands in closing costs; the other doesn’t cost a dime. Which is the better deal? The answer depends on the total costs of the loan, not just the closing costs (which are the costs involved in obtaining the loan). Loans that waive closing costs often force you to pay a higher interest rate. So when evaluating loans, you need to determine which program offers you the lowest cost over the life of the loan, not merely the lowest cost for obtaining

As you can see, refinancing depends on how much it costs, how much it saves and how long you plan on living in the house. If you have a loan consultant or lender that you trust and like, refinancing will be no problem. Your consultant should be able to give an honest understanding of your options. A competent loan consultant will help you refinance ONLY if it makes financial sense to you. Your lender or loan consultant should be able to give you a refinance analysis, so you know if  is worth it or not

Now,  If  your  loan Consultant or lender is not  willing to  give you the necessary knowledge so you can make a wise decision; then it is time to get a new lender or loan consultant that will give you world class service. After All, you deserve it!

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