MAXIMIZE SAVINGS WITH A MORTGAGE REFINANCE- TIPS FOR SUCCESS

Is a refinance in your future? Are interest rates to a level where a refinance can help out? Maybe you want to get out of that 5/1 hybrid and grab these low rates? Want to shorten the term of your loan and refinance from a 30 year loan to maybe a 15? If you�re thinking of refinancing, you�re not alone. But there are some things you can do both before and during the refinance process that will maximize your savings and reach your financial goals.

Every lender will tell you the first thing you can do to move your application along smoothly is to provide the lender with everything asked for upfront. Don�t delay. This puts your loan application in the pipeline sooner and most lenders don�t start processing a loan application until it�s completed.

Gather all your relevant financials such as your bank and investment account statements. If you�re self-employed, get copies of your two most recent federal income tax returns.

Once you submit a completed loan application, you will receive within three days your initial Cost Estimate. This document will itemize the closing costs you�re likely to see at the settlement table. Review these fees with your loan office and discuss which fees are negotiable and which are not. Lenders typically don�t have control of third party fees but they do know of ways you can save. For example, when refinancing, if you get your title insurance and hold your closing at the same company, you might get a discount.

Discuss various point/fee combinations with your loan officer. All mortgage programs come with a list of different interest rate and discount point fees. For example, you can lower your 30 year rate by about 0.25% if you pay one point. On a $250,000 loan, one point equals $2,500. However, paying points and maximizing savings sometimes isn�t worth the cost. Instead, ask your loan officer about a lender credit toward your closing costs. In exchange for a slightly higher rate, your lender can offset some or even all of your closing costs with the right rate.

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