Dave G asked:


I still owe 75% on my existing mortgage, am I obligated to stay with my current lender? If not, what do I do first?
- Call local banks?
- Do the web search and go with the lowest % rates when they list the bigger lending companies in the results?

By the way, we have 6.25% now… should I not fool with all this unless I can get below 5.25?

Thanks in advance!

DONNIE

5 Responses to “What are the first steps to refinance my home?”

1. PJ on January 22nd, 2009 7:30 am

   ART

   You don’t have to stay with your current lender. Yes, call local banks - but you could search the web also. You need to wait until you can get more than 1% drop in interest rates because you will have fees to pay with refinancing, so to refinance for less than a 1% drop isn’t worth it usually.

2. Alterfemego on January 25th, 2009 3:05 pm

   NIGEL

   Dave you just need to talk with several lenders in your area to see what programs that are offering and select the one with the program you feel comfortable with and provides you with what you need and/or want. Shouldn’t really matter which lender you use, just do your homework on internet lenders very well. Obviously don’t select the one that tells you what you want to hear right off the bat. I’d make sure they have a website, that is updated,that they have no complaints filed against them in their state or yours, whichever.

3. Star Gazer on January 26th, 2009 8:18 am

   SANFORD

   The first step is a pre approval. I would first scout out all the best deals on line as they are all available on line these days. DO NOT apply for more than one loan though as each time you apply your FICO credit score take a hit as you search for debt.

4. pagodaboy2001 on January 29th, 2009 6:34 pm

   KURT

   different lenders will charge you different closing costs you’ll need to do a cost analysis or break even to determine if you should refinance or not.

5. Kris on January 30th, 2009 6:38 am

   LON

   you can get a 30yr in the low 5’s.If you are currently paying PMI, depending when you got your home and the location a new appraisal may or may not be in the 80% loan to value range- could be a gamble that should only cost you between $250-350 like I said all depends on when and where you purchased, the market as we know is a bit upside down right now. First step is to check out the current mortgage co you are with, sometimes they can refi you at discounts, or shop around- it doesn’t cost anything to get a good faith estimate and compare. do you have a good relationship with your local bank??? Most banks offer mortgage services and could also cut you some breaks. Be careful of web searches, if a rate is to good to be true it probably is. look at the actual loan rate and then the APR, how far apart are those figures?? the APR is the rate with all the loan fees added in- so if there’s a big spread that means you could be paying BIG fees and up to so much as a point.

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