3 Common Mistakes You Should Avoid When Refinancing A Mortgage

refinance a home
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Mortgage interest rates are currently at an all-time low. If you’re not interested in purchasing a new home, you may want to see if you can refinance your current loan. It can be difficult to find a good interest rate and start the process.

Let us help you and learn to avoid some common mistakes many homeowners make while trying to refinance their mortgage. Here are three common mistakes many people make and what to do instead:

1. Make sure to shop around

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Apply online / PxHere

You don’t have to choose a company quickly for a refinance. Many people just go to their bank or credit union and get whatever refinance rate they get approved for. Don’t be afraid to shop around.  There are so many different options online these days, don’t forget to check out Lending Tree🌲. Take your time to get the best rate possible. Don’t waste money, shop around for different rates today!💰

2. Don’t refinance too often

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House / Pexels

Many people try to refinance again and again when the rates lower. You have to pay about 3-6 percent of the loan balance in order to refinance, so you will need to have money behind you. You may also pile up closing costs. When closing costs add up, your loan balance may increase which kind of defeats the purpose of trying to save money. Make sure it makes sense to refinance before you start the process.

3. Look for “junk fees”

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Money / Flickr

Junk fees are other fees that are added on to the closing costs. Companies can add these hidden fees in and you won’t even realize it if you don’t read your paperwork closely. Look for things like “document preparation” fees or check for normal fee pricing for credit report lookup or document delivery.

Getting a professional to look at your paperwork can help you avoid a lot of hidden fees. To save you some time I looked at a few companies and suggest checking out Quicken Loans. They have a 9.5 out of 10 with over 14,000 reviews on Trustpilot.com! Avoid Unnecessary Fees With This Top Rated Company…

So, there you have it! Good luck if you are choosing to refinance your home right now. When done right, it can save you a lot of money per month and/or in the long run!

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