Q & A: Whom to Contact (Other Mortgage Considerations)

Click a question to jump right to the answer:

  1. How do I select a loan provider?
  2. Where can I get a list of mortgage brokers?
  3. Where can I learn more about refinancing?
  4. Where do I get information on locking-in a mortgage loan?

How do I select a loan provider?

Shopping for a loan can be an overwhelming process. There are many online services that compare local loan rates, but it is important to remember that these services are just quotes and there are other factors that will impact your final loan rate. Shop around and talk with a few lenders, get good faith estimates, and ask each lender what type of communication and support they provide. Remember, this will most likely be the largest purchase of your life and therefore you will want to select a reputable lender who will answer your questions and stand by you during the loan process.

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Where can I get a list of mortgage brokers?

The National Association of Mortgage Brokers, www.namb.org, provides data and contact information on mortgage brokers.

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Where can I learn more about refinancing?

A loan refinance can be advantageous to a homeowner if the current interest rates are lower than their fixed interest rate. But, there are costs involved when refinancing, and therefore the amount of time it will take to make back the refinancing charges and how much longer the borrowers plan to stay in the home must be considered. For example, if refinancing charges are $3000 and the monthly savings of refinancing are $200, it will take 15 months before the financing charges are recouped. If you are interested in refinancing, speak with your lender or financial advisor to learn more about how it could benefit your monthly payments.

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Where do I get information on locking-in a mortgage loan?

Locking in your mortgage rate guarantees that rate for your loan at closing, even if the rates go up. Likewise, if the rates go down, you are still locked in at your guaranteed rate. For this reason, everyone wants to lock-in their mortgage rate when rates are at their lowest. Unfortunately, there is no way to know when that will be. But, many prefer to take the chance of locking in and rates dropping, than take the chance of not locking in and rates rising. Speak to your lender regarding their lock-in process, if they charge any lock-in fees, and what their time limit is for their guarantee (most guarantees expire after 30-60 days).

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