What Not to Do when Refinancing your Loan
With fixed rate loans dropping to levels below or equal to variable rate loans, there's never been a better time to shop around for a new mortgage. When it comes to changing your mortgage, however, there is a right way and a wrong way to go about it.
Refinancing is a great way to access lower interest rates, more product features and better customer service.
There are many reasons why you might be considering it: if you want move to a new lender, for instance, or if you're seeking to switch between variable and fixed rates.
However, you need to understand that refinancing isn't simply a "tweak" to your existing loan. It involves a completely new home loan application and will result in a new entry on your credit report, even if you refinance with the same bank or financial institution.
So, before you fill out the paperwork and begin the process of moving your mortgage, be sure to ask the following questions so you don't make any costly mistakes.