If you’re struggling with your monthly mortgage payments and still paying a very high interest rate on your adjustable loan, it may be a wise idea to refinance your current loan online. But to find the best possible refinance rates, shop around and select the one which best suits you, your needs and budget. The best refinancing rates can save you a lot of money in the long run, making it well worth the effort. Here are a few tips to help you locate the best FHA rates.
Shop around. Many people often assume that just because they have an FHA loan with a fixed rate, it means these particular terms will always be available. But this is not the case at all. You should look around for as many quotes as possible and take the time to compare them, from both lenders and different sites, to ensure you get the lowest and best refinance rates today.
Talk to your loan officer. Your current lender might offer you a better deal when it comes to refinancing their loan. If this is the case, talk to your loan officer about refinancing, and find out what options are available to you based on your current mortgage rates and term length. There may be some good news here, and some bad news, depending on the circumstances.
Compare the rates offered by different lenders. Once you’ve discussed your situation with your current loan officer and they’ve all the facts, you should then contact several other lenders and tell them all the details of your situation. Ask about fixed interest rates versus variable interest rates. Also inquire about the possibility of no-issue refinancing. No-issue refinancing means that you would not have to worry about past mistakes and will pay whatever interest rates that are set, regardless of what the market currently has going for you.
Look at the fixed-rate option. If your lender does not offer fixed rates on their mortgage loans, you might be tempted to take out a home equity loan or an adjustable-rate mortgage with a fixed interest rate versus a variable-rate interest rate. The fixed rates generally have a higher start-up interest rate than the variable-rate option, which will save you money in the beginning. However, with the fixed rates, you will end up paying this interest rate through the term of your home. This is not the case for the 15-year or 30-year option, which have lower start-up rates but will eventually become cheaper as the interest rate fluctuates.
Choose a longer term. If you need extra money and can put up collateral for the loan, look for a low-interest-only mortgage or a fixed rate mortgage. While there may be an initial increase in your payments, you will end up saving more in the long run by paying less in interest. Also, some people choose to take advantage of low FHA rates and get a fifteen-year fixed rates mortgage, while the fifteen-year or thirty-year option will give you a better price.
Go to a free mortgage site. There are many free mortgage sites that allow you to fill out a short application form. With these forms, you will be able to search for home loans, especially FHA home loans. You might be able to find competitive mortgage deals, or you might want to look elsewhere. Remember to look at all your options before making a decision.
Talk to a loan officer. Many people feel very intimidated by their loan officer. They might not know anything about FHA loans and may push you into getting one of these regardless of your situation. A loan officer can help you get the information you need to make a smart choice. It is possible that this FHA home loan refinancing may save you money and have you feeling more secure in your home.