Lower Your Payment
Looking To Lower Your Mortgage Payment? Be Careful!
What's the real cost of a refinance?
Be careful as you are comparing mortgage lenders, rates, and closing costs. Many times, unscrupulous lenders will hide costs from you, and make an expensive financial decision seem like a good deal.
So if you are looking to lower your mortgage payment, what should you look for when you are shopping for a lender?
The Lender's Reputation
One of the first things you should do when you are looking for a lender is inquire into their reputation. Ask friends, family, and co-workers who they have had a good experience with. Research the lender's online reviews to find out other's experiences. Are they local or are you calling a 1-800 number to get someone on the phone? Are they available after hours if you have a pressing question? These are all things that can play a part in your overall experience with your refinance, and can help prevent a bait and switch situation or getting a bad deal on your home loan.
Mortgage points are fees that are charged by a lender in an effort to get the interest rate down. One point = 1% of your loan amount, so on a $300,000 loan, one point would be $3000. This may not be a bad thing because if you pay points, you would get a lower interest rate. By paying points, you will save money in the long term, but it is not a good decision to pay points if you plan to only have your new loan for a short period of time.
There are two things to watch out for in relation to fees. The first and most important is where a dishonest lender lowballs fees to get you to commit to working with them, and then changes the fees once you get started on the loan. This is one form of bait and switch. The second thing to watch out for is that the lender estimates your taxes and insurance correctly. Many times, out of state lenders incorrectly estimate these items, sometimes on purpose, but sometimes it is just because they are not familiar with Pennsylvania mortgage transactions.
No closing costs?
You may hear advertising for a no closing cost refinance on the radio or TV. This can sometimes be a good thing, but a no closing cost loan comes at a price. You will pay a higher interest rate on your loan if you choose a no closing costs option vs. paying the normal closing costs. This can many times be a very wise decision because there is no break-even point to recoup the cost of your new loan, but if you plan to stay in your home for a long time, then you may want to consider paying the closing costs and obtaining a lower rate. Do not worry if you do not have the funds to bring several thousand dollars to closing; closing costs may be able to be rolled in to your new loan!
Fixed Rate vs. ARM
One more thing to consider is if an ARM makes more sense than a fixed rate loan. ARMs come in several terms, the most common of which are 5 year fixed and 7 year fixed. Both are on 30 year amortizations, but are at a fixed rate for 5 or 7 years, respectively. Interest rates on ARMs are lower than fixed rate loans, so this type of loan can make sense if you do not plan to be in your home for more than 7 years.
For an honest, accurate, no obligation rate quote on mortgage refinancing in Pennsylvania, give us a call in the office at 720-598-0506 to see how much you can save and what your best options are. Or email us at email@example.com.
We had a great experience with AMG overall. Because of some outside circumstances they were more than willing to go the extra mile in making sure that funding went without a hitch. Communications were always prompt and the online document signing was easy and straightforward.
I never plan to move again but if I did I wouldn't hesitate to go back to Mr Beattie.
Yes! We would definitely use this team again any time. The entire team was extremely helpful in every aspect an step. Jeff and his team was always available to answer any questions. Checking and double checking our documents and crunching numbers within record times during the actual looking stages of a home to find the right one. This team didn't stop till we signed our closing documents. Loved them!
We couldn't have done it without Jeff, Anne, and Brenda. They stayed on top of everything throughout the whole process. We'd definitely recommend them!
Absolutely loved working with Jeff and Anne. They are so knowledgeable and personable. They are available on evenings and weekends to answer all questions. My realtor was horrible and they pretty much assumed the role of realtor and mortgage broker. I have referred them to friends and will continue to do so. Amazing experience!
Jeff Beattie and the entire Alliance Mortgage Group team were professional and responsive throughout the refi process. Special circumstances required increased attention to detail which they managed competently and built my confidence in their team. They will get my exclusive referral for anyone looking for a business with a professional and personal approach when needing to refinance.
The team at AMG were so helpful and knowledgeable about everything we needed to make sure this refinance went smooth! Jeff and his team were there every step of the way to ensuring all my questions were answered and I was completely comfortable with the process. I wouldn't use anyone else to handle or mortgage needs.
We were purchasing a second home in the mountains and had a couple complications with the seller which turned a routine process into a difficult one. Jeff was there every step of the way with us. He and his team were so helpful and knowledgeable about everything we needed to make sure the deal went through! They also were very easy for our real estate agent to work with as well. They provided the documentation needed quickly and were extremely thorough to make sure we hit our deadlines. Without AMG Lending and their hard work our deal would not have happened. We thank Jeff and his team for going above and beyond. We wouldn't use anyone else to handle or mortgage needs and refer everyone we know looking to buy a home or refinancing.
Jeff and his team were completely amazing! I came in needing funds, and Jeff was able to assist with my difficult situation with apparent ease. I absolutely cannot recommend him and his team enough. They were extremely friendly, kind, and efficient. Thank you!!
My husband and I used Jeff Beattie for our refinance. We have refinanced previously and I have never seen such professional and comprehensive service. He explained the process completely from the start and kept us advised as to each step in a timely manner. Whenever we had questions, he promptly responded and made sure we understood all of the details involved and explained in fully comprehensive and comprehensible manner. The refinance was completed in a reasonable time frame and he was most courteous and knowledgeable. I would not hesitate to recommend Jeff.
What an amazing group of folks. So knowledgeable, professional, awesome customer service, prompt follow up, getting the best in all services, friendly...they were top notch all the way around
Every point of buying our home went so smoothly, without a hitch! Thank you so much for helping us buy our dream home! We would recommend Jeff to anyone!