Posted on: 09th Aug, 2011 08:07am
Like in case of taking out a new loan, in case of refinancing also, it is very important to make the right choice. One important criterion to select a refinance loan is to opt for the one which offers lowest rate. The annual percentage rate (APR) rather than the interest rate is a better measuring rod to select a refinance loan. APR gives better reflection of the true cost of a mortgage loan than the rate of interest.
But only low rate is not the sole criterion to select a loan for refinancing. Another important intangible factor that you need to take into consideration is how much trust the lender has been able to garner. If a mortgage agent or broker is able to win your trust, then you feel confident to make the purchase. A genuine and trustworthy agent will offer you the best deal after analyzing your case carefully. A credible loan officer will work with you keeping your best interest in mind and he or she will try best so that you are treated favorably. Along with trust, another key factor to get the best refinance rate is of course knowledge. Perfect knowledge about the different refinance rates available at the market place helps you pick the best deal.
But only low rate is not the sole criterion to select a loan for refinancing. Another important intangible factor that you need to take into consideration is how much trust the lender has been able to garner. If a mortgage agent or broker is able to win your trust, then you feel confident to make the purchase. A genuine and trustworthy agent will offer you the best deal after analyzing your case carefully. A credible loan officer will work with you keeping your best interest in mind and he or she will try best so that you are treated favorably. Along with trust, another key factor to get the best refinance rate is of course knowledge. Perfect knowledge about the different refinance rates available at the market place helps you pick the best deal.
For those who recently refinanced their home, could you share with me why you chose the bank/mortgage company you did? Low costs and rates are fine, but I'm also looking for honesty and low pressure.
After researching my needs and credit status, I just spent two hours talking with a few banks and brokers via email and chat. Wow, some are no better than a fast-talking car salesmen (no offense to car salesmen). Yes, they have a job to do, but the pressure applied is way over kill IMO.
Thanks for your input. Great info here.
After researching my needs and credit status, I just spent two hours talking with a few banks and brokers via email and chat. Wow, some are no better than a fast-talking car salesmen (no offense to car salesmen). Yes, they have a job to do, but the pressure applied is way over kill IMO.
Thanks for your input. Great info here.
I am not a consumer, but a lender, and to answer your question, it really comes down to trust. People will pay more for a car, a house a loan, etc, if they feel confident in the purchase and they trust the agent or salesperson. If you go with a broker, then you have access to more loan programs. If you go to a bank or direct lender, you will usually get the best costs. If you choose a large bank, your service may be lacking...But the rates are all competitive. You want to check the APR and the note rate. The closer the APR is to the rate, the cheaper the costs are to close the loan. A high spread between apr and rate, signals a higher cost loan. Good luck!
I agree with Chris in that trust is key. You need to know that the loan officer who's working with you has your best interests in mind, and that he or she will go the extra inch - mile - whatever - to ensure that you're treated fairly in every way, that your rate is locked in with your best possible scenario, etc.
Chris' analysis of the cost issues is pretty fair, but rates are always going to be dependent on your own credit. With minimal variations based on who you speak with, you'll find rates are predominantly the same most everywhere.
Chris' analysis of the cost issues is pretty fair, but rates are always going to be dependent on your own credit. With minimal variations based on who you speak with, you'll find rates are predominantly the same most everywhere.
I know I came to this party a little late and my comments may not help the OP but here I go anyhow.
I respectfully disagree with the contention of trust being a criteria for selecting a loan officer or loan originator. Trust to me is an unknown quantity that you only learn about after the fact and even then, it may be misguided.
As with everything, knowledge is the key criteria to getting what you need when shopping for a home, mortgage, car, or anything else for that matter. Too often people put trust where it is not warranted such as from a friend or relative who probably knows even less than you do.
Also, mortgage brokers do not necessarily have more loan programs than anyone else. Mortgage bankers who also broker business have access to the same sources as a mortgage broker and usually have more control over the loan process. I also have not found big banks to be as competitive as smaller direct lenders and would be interested to see someone provide current quotes to back up the assertion they are competitive.'
I strongly disagree with using an APR as a basis to compare loans. Anyone with any knowledge in this business should know using APRs is not how you compare one loan offer against another. 'APRs can be and are often manipulated. Stick with specific fees, primarily the lender fees when making a comparison from one loan to another.
Final comment is everyone can provide the same rate as the next guy. So if anyone says they have the lowest rates it is meaningless. It's a combination of the rate and associated fees you have to compare, which can change drastically from lender to lender and on a daily basis.
So is it easy to shop and compare loans? My vote is no unless you have the correct road map to do it. Everyone who says they know how to do it correctly is getting it wrong. I have the answer and it will be out soon. Stay tuned.
I respectfully disagree with the contention of trust being a criteria for selecting a loan officer or loan originator. Trust to me is an unknown quantity that you only learn about after the fact and even then, it may be misguided.
As with everything, knowledge is the key criteria to getting what you need when shopping for a home, mortgage, car, or anything else for that matter. Too often people put trust where it is not warranted such as from a friend or relative who probably knows even less than you do.
Also, mortgage brokers do not necessarily have more loan programs than anyone else. Mortgage bankers who also broker business have access to the same sources as a mortgage broker and usually have more control over the loan process. I also have not found big banks to be as competitive as smaller direct lenders and would be interested to see someone provide current quotes to back up the assertion they are competitive.'
I strongly disagree with using an APR as a basis to compare loans. Anyone with any knowledge in this business should know using APRs is not how you compare one loan offer against another. 'APRs can be and are often manipulated. Stick with specific fees, primarily the lender fees when making a comparison from one loan to another.
Final comment is everyone can provide the same rate as the next guy. So if anyone says they have the lowest rates it is meaningless. It's a combination of the rate and associated fees you have to compare, which can change drastically from lender to lender and on a daily basis.
So is it easy to shop and compare loans? My vote is no unless you have the correct road map to do it. Everyone who says they know how to do it correctly is getting it wrong. I have the answer and it will be out soon. Stay tuned.
I certainly can't disagree with your opinion that trust is easily misplaced, and that knowledge is imperative. Of course, for the "great unwashed," i.e. the majority of the public, there is an enormous gap between belief and knowledge. People think they know how to accomplish things, but that's so far from reality too often that it'd be laughable if it weren't so sad.
"The lowest rates" is more of a lie than it is meaningless, to me. I buy your stance though, Jim. And I agree with your consideration of APR being a source of value.
As for the last...if you "have the answer" does that make you correct instead of the ones who "know how to do it correctly" but who get it wrong? It's contradictory...but I'm just messing with you.
You and I and Raymond and John could all write essentially the same book and (unfortunately) get ignored, despite having all the right answers if we have the wrong book title, and some of those ne'er-do-wells who we all criticize are making a small fortune because they promise "making money overnight."
I will heed your advice, however, and stay tuned with discerning eyes.
"The lowest rates" is more of a lie than it is meaningless, to me. I buy your stance though, Jim. And I agree with your consideration of APR being a source of value.
As for the last...if you "have the answer" does that make you correct instead of the ones who "know how to do it correctly" but who get it wrong? It's contradictory...but I'm just messing with you.
You and I and Raymond and John could all write essentially the same book and (unfortunately) get ignored, despite having all the right answers if we have the wrong book title, and some of those ne'er-do-wells who we all criticize are making a small fortune because they promise "making money overnight."
I will heed your advice, however, and stay tuned with discerning eyes.
Of course that commentary was in response to you, Jim...I just noticed that I didn't address you directly; sorry for any confusion I might have caused.
George, there are certain steps to getting people understand that you have the right answers and why you are different from the rest of the crowd.
First they need to understand exactly what the problems are, why they cannot solve the problems on their own and why you are the only true source that can provide a solution - or should I say the best solution among others.
This is where sound marketing has to meet up with sound knowledge and most people lack either one or even both of these qualities.
So you're right, if you have the know how but the wrong book title you are destined to fail. However, right book title, right knowledge to back it up, and amazing things can happen even within the complex, confusing and rightfully maligned mortgage business.
First they need to understand exactly what the problems are, why they cannot solve the problems on their own and why you are the only true source that can provide a solution - or should I say the best solution among others.
This is where sound marketing has to meet up with sound knowledge and most people lack either one or even both of these qualities.
So you're right, if you have the know how but the wrong book title you are destined to fail. However, right book title, right knowledge to back it up, and amazing things can happen even within the complex, confusing and rightfully maligned mortgage business.