Finding the Best Refinance Companies to Get you Started

When it comes to refinancing your home you may be wondering what the best refinance companies out there are. The fact is, because every refinance is a unique situation, there may not necessarily be a ‘best’ company that works for everybody across the board. There are big companies that handle thousands of loans, and there are small local companies that don’t have that type of volume, but both companies are unique in what they offer the consumer. So as a homeowner you don’t want to work with the best companies so much as the best company for you.

The Best Refinance Companies Start With You

FHA RefinancePrior to approaching any company on the possibility of a refinance, you need to get your finances in order and get a clear goal in mind of what you want to achieve with the new loan. When you refinance you want to get the lowest interest rate possible. To do this you need to have the best credit you can get. So that is where you want to start. Pull your credit score and if it is low, do what you can to improve it. This may mean you pay off a couple of credit cards or it may simply mean that you clear up discrepancies that have shown up. Sometimes it’s both. Regardless, the higher you can get your score, the better off you will be when it comes to your interest rate.

Your next step is going to be to determine how long you intend to be in the home and what you want out of the refinance. For some homeowners they want to reduce the interest rate so they can pay less over the life of the loan. This is especially beneficial if they know they are going to be in the home for ten or twenty years. Other homeowners just want to reduce the monthly payment because they are feeling financial strain. In some cases they know they will be redoing the loan within five years so what matters most is saving money up front instead of the long run. There are many scenarios that can play out here. The key is to determine what you need from your refinance so you can find the best refinance companies to work with that will help you achieve your end goal.

Finding Your Lender

After you’ve done some preparation, you’re going to need to start looking at your options. Finding the lender that is willing and able to help you achieve your financial goal is going to be your next goal. So first you may want to contact your current home mortgage company. Tell them what you need and what you are looking for and see what they can do to accommodate your request. Sometimes the lending companies are the best refinance companies, but not always. So you start with them but don’t end with them quite yet.

Once you’ve gotten a quote from your mortgage provider, shop around, get some quotes from other companies. Get the quotes from different types of refinance companies as well. So find something national, something local, a credit union. There are a few different types of refinance companies and each will typically offer something different. The better variety you get, the more you are able to see what you can really secure with your refinance.

After getting the quotes you will want to compare each of them to your current home mortgage. Compare everything from down payments and fees to your amortization schedule and your bottom line. What you’re trying to do is to determine which one is going to save you the most money and be the closest to achieving your goal. Keep in mind at this point that some of them may offer a great interest rate but you want to consider the APR as well, as this can have quite an effect on the amount you end up paying.

You will also want to look at no cost options vs. full cost options because oftentimes the full cost options end up being cheaper in the long run, but more expensive if you’re going to leave the home within five years. Make sure you discuss all of the details and the fine print with your loan officer and your refinance company.

As a last little note, shopping around and preparing your finances are must do’s before refinancing. On top of this, you may want to consider finding reviews for the company you are considering working with. Sometimes the customer reviews are the best indicator of the type of experience you’ll get through your refinance company.