Question:

What is a mortgage refinance lender?

Answer:

A mortgage refinance lender is someone specializing in different purpose refinances - usually debt consolidation and cash-outs. They are supposedly offering better rates on refinances, but the refi market niche is known for its susceptibility to predatory lending practices.

Programs offered by specialized mortgage refinance lenders are often advertised as great debt management plans. However, do not expect them to offer you the best terms just because the refinance lender said they specialize in "effective debt reduction".

If you are looking to consolidate non-secured obligations within a mortgage refinance, make sure you will be disciplined enough to get the best out of the program. What happens if you transfer your credit card debt to your monthly mortgage over a new 30 year period? Is the new rate effectively better than the previous one? Is there a chance you will be using your credit cards again and falling behind with payments? These are questions you will need to consider before applying for a debt consolidation mortgage refinance.

How to approach a mortgage refinance lender?

A mortgage refinance lender may be able to offer you professional help and help manage your mortgage. Before going to a specialized lender, though, see what tools your current lender offers for a refinance. Then go out, do some shopping, come back and ask them to beat the best mortgage refinance offer you got. Online refinance tools may get you a quick perspective on what refinance options are offered on the market in your area.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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