Smart Ways to Refinance Your Mortgage During the Pandemic

Smart Ways to Refinance Your Mortgage During the Pandemic

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Refinancing your home can be a process even during the best of times, so imagine how complicated it might be during a pandemic. With anxiety about germs, loss of income, and fluctuating rates, there’s a lot that could potentially go wrong. However, there are a few tips that can help keep the process moving along smoothly, despite any odds. Here are four of our favorites:

Don’t Be Afraid to Shop Around for Rates and Lenders

The good news is that mortgage rates are at historic lows. However, they’re also bouncing up and down as a response to factors such as an influx of applications and the federal funds rate. In other to find the lowest rate possible, you should take the time to search for the best lender. Don’t go with your usual or someone that was recommended to you. Instead, reach out to various lenders so that you can compare and contrast any reasonable rates they might offer.

Take Advantage of a Variety of Resources When Searching for a Lender

When you search for a lender, keep in mind that there is more than one way to find a refinance rate. There are three sources in particular that you should take advantage of. These include online mortgage brokers, going directly to the institutions and real mortgage brokers. Your goal is to find the best rate possible, and that rate can fluctuate greatly depending on the time, the place and the person involved.

Asking About Fees is Extremely Important

You might think you’ve found an incredible rate, just to later find out that the hidden fees involved made the overall costs much higher than expected. For example, when moving to another credit union, they might want to charge you for an appraisal fee, which can cost as much as $800. However, if your home has been recently appraised, your original credit union or bank might still have your last appraisal information on file. In other words, if you hadn’t bothered to check about included fees, you could have potentially spent hundreds of dollars more in the process. You should also be wary of any other additional fees, such as origination fees and fees out of pocket.

Keep Your Safety in Mind

Don’t forget that there is still a pandemic going on, and this isn’t a time to start becoming lax. When it comes to signing any paperwork or going over documents, you should make sure that you’re 100 percent comfortable with the process. Don’t be afraid to make your thoughts known and to work out a compromise with the lender so that you both can feel safe about the entire process.