Home mortgage refinancing can be required for a number of different reasons, but regardless of why you’re going through the home mortgage refinance process, here are a few key things you should always keep in mind.
First, start the process as soon as possible. Even though residential mortgage financing can be located and secured fairly quickly, it still can take time and you don’t want to be placed in pressurized situation where time is running out and you’re forced to take a less than optimal home mortgage refinance option.
The mortgage market also can have a lot of programs and options available to you, depending on your credit and financial profile, so its going to take some time to figure out what the market has to offer and who is going to give you the best deal.
Because lender programs and current offerings are subject to change, the market may be somewhat different from what you remember from the last time you had to go through the mortgage application process, which in the case of a 5 year fixed mortgage may have been 5 or more years ago.
Second, if you can help it, don’t try and secure a maximum leverage position on refinancing. The more room you have available in your credit profile as a whole, the more lender interest you’re likely going to have. If you’re primary refinancing goal is to get the best rate available, then having some competition for your business will likely be a good thing.
Third, consider working with an experienced mortgage broker. As we mentioned earlier, it can be hard to gain a proper and thorough understanding of the mortgage market at a given point in time, especially when you’re not working in it on a day to day basis.
A residential mortgage broker has the advantage of working with a large cross section of lenders and will also have a working knowledge of who is being more competitive or aggressive on rates and who isn’t for the type of application you are going to be putting forward.
The mortgage refinancing process can also involve some significant mathematical analysis, especially if there are prepayment penalties involved. A residential mortgage broker will work through each potential scenario with you to help you arrive at the best option.