Choosing the FHA Mortgage Refinance Companies that are Best for You

Part of getting a successful refinance is finding a mortgage company that is able to offer you what you need in a refinance. There are many FHA mortgage refinance companies you can choose from, and they will each offer their own promotion to get you to work with them. But before you just pick a random company, there are a few steps you can take to weed out the companies that won’t work for you, and to find that ones that will.

Choosing Between FHA Mortgage Refinance Companies

FHA RefinanceBefore you start looking for a refinance, ask yourself what it is you want to get out of the refinance. By having a plan of action you are able to approach the mortgage companies knowing what you want. When they give you a quote and show you your options, you will be able to determine whether or not what they are offering will actually work for you.

So these are a few of the questions you need to ask yourself to decide what you want. Do you want to stay in the home for a short period of time, or are you looking for a long term mortgage? Would you like to reduce the interest and mortgage payments? Is the term length important and if so, do you want to reduce your loan length? Do you want to save money up front or down the road, maybe both? Do you want to cash out the equity? All of these questions need to be asked so you can figure out exactly it is that you’re looking for because it will change what you are willing to take on with the loan. For example, if you intend to stay in the home for no more than a couple of years, you may not want to pay all of the closing costs up front and instead pay them over time with the mortgage payment. On the other hand, when staying in the home for ten or twenty years, it’s often cheaper to pay the closing costs and even to pay additional points on the home to reduce the interest. When you know what you want your loan officer can help you get what it is you need.

Be Picky With Your Lender

Many homeowners decide to refinance and immediately contact their current mortgage company. This is a great move, but it’s not so great if you just go with the quote they give you instead of getting other options. While you may be comfortable with your lender and happy with their service, you don’t know if the deal they’re offering you is really going to be worth your time until you’ve compared it with other quotes.

After you’ve gotten the quote from your current mortgage company, approach other FHA mortgage refinance companies and have them give you quotes as well. AS a good rule of thumb, getting five quotes is a decent number. This will give you a better idea of what you can qualify for and it will show you where the companies are going to be willing to work with you. IT’s also a good idea, when getting these quotes, to approach different types of FHA mortgage refinance companies. So you’ll want to get a quote from a national chain company, and a smaller local company, maybe go for a credit union. The reason this is recommended is because each of them will have very unique promotions they can offer. You want to know all of your options.

By getting the quotes from multiple sources you are then able to compare the terms with that of your current loan and the loan offered by your mortgage company. Many homeowners find that they are able to go back to their mortgage provider with the new quotes and negotiate different terms. This isn’t always the case, but the mortgage company benefits from keeping your business, so it’s not uncommon for certain fees or terms to be reduced or adjusted simply by sticking with your original mortgage company. So always negotiate the deal with whatever company you choose. You never know what you’ll be able to save by a little bit of negotiation.

Last but not least, listen to the reviews that have been given by other homeowners. A quote may look great on paper but the information given by people who have worked with the mortgage company previously are often the best source for information because they show you how you can expect to be taken care of.