How to get a mortgage refinance to lower interest and cost of getting the new loan?


A mortgage refinance to lower interest and cost of acquiring a new loan is mostly possible when your credit has improved and you easily qualify for better rates.

Usually, any mortgage refinance is done with the purpose of lowering interest and payments. If a lender is calling you to offer you a good refinance deal, you should be careful as sometimes refinancing leads to unnecessary equity stripping.

A good starting point to get a mortgage refinance to lower interest will be to go to your lender when your credit has improved. Since you are already a customer, and if prepayment penalties can be negotiated or no longer apply, your lender may offer you a mortgage refinance with significant reduction of the rate. They may also offer you to roll the cost of the new mortgage refinance loan into the loan itself. This, however, will not happen if you entered your mortgage with a double digit rate, or close. As such high rates bring additional profit to the lender, they probably won't agree that you walk away easily and they have certainly inserted expensive prepayment penalty clause in the agreement.

If your own lender does not agree to a mortgage refinance to lower interest right away, you will have to go to another lender and get ready to pay prepayment penalty fees. The sooner you do mortgage refinance to lower interest loan, the greater cost your current mortgage will incur to you.

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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