Mortgage Refinance - Tips to Help You Cut Fees and Costs

Saving money through a mortgage refi is more than just finding the lowest interest rates. You can further cut fees and costs through the structure of your loan, avoiding PMI, and buying lower interest rates.

Close Credit Card Accounts

Close inactive credit card accounts to improve your credit score, making you eligible for lower interest rate loans. You will need to notify the credit card companies in writing that you wish the accounts closed on your request.

Next, check your credit report after 30 days to be sure closed accounts include the comment "Closed at Customer's Request." You want future lenders to know it was your request and not bad credit that closed your accounts. Also, take the time to check for any mistakes in your credit report that could negatively impact your credit score.

Avoid The Hidden Cost Of PMI

When refinancing a mortgage, as many as 30% of homeowner's cash out part or all of their home's equity. By investing in home improvements or paying off credit cards, this can be a smart. But, if you are borrowing more than 80% of your home's value, you will be hit with private mortgage insurance, costing you hundreds a year.

Pay Points Now

If you are planning to stay in your home for several years, then you can save money by paying points for lower interest rates. You pay up front fees to ensure you have lower interest payments over the course of your loan. Remember, this only works if you keep your mortgage for several months.

Choose A Short-Term Loan

Short-term mortgages offer lower interest rates than long-term mortgages. You save money by the lower interest rates and shorter payment period. The trade off is a larger monthly payment, but this option can save you thousands.

Ask About Fees

Fees are a hidden cost of many mortgage loans. By law, lenders must disclose fees within three days of a loan application. Fees can go by many names like ? document prep fees, courier fees, administrative fees, and more.

When comparing refi options for your mortgage, request a list of fees from several lenders. Add these fees with the interest of a loan. With these figures, you may be surprised that the cheapest loan didn't have the lowest interest rate.

To view our recommended sources for refinance mortgage loans online, visit this page: Recommended Refi Mortgage Lenders Online.

Carrie Reeder is the owner ABC Loan Guide, an informational website about various types of loans.

China Daily
Washington's Fannie And Freddie Plan: Why Now?
Forbes, NY - 5 hours ago
Any announcement would come just weeks before the two companies have to refinance $225 billion of mostly short-term notes. Fannie and Freddie sell debt to ...
Paulson Plans to Take Control of Fannie, Freddie (Update1) Bloomberg
Questions, and Hope, on Plans for Mortgage Giants New York Times
Government bail-out for US mortgage giants FannyMae and FreddyMac domain-B
Nolan Chart LLC - HULIQ (press release)all 996 news articles

Understanding Mortgage Refinance Rates
SheKnows.com, AZ - Sep 4, 2008
Mortgage refinance rates are the lowest rates, homeowners can get when trying to refinance their mortgages. Simple, isn’t it? Maybe so, but obtaining the ...

The Associated Press
Troubles spread to prime Md. mortgages
Baltimore Sun, United States - 11 hours ago
... interest-only mortgage with an adjustable rate. The rate kept rising until it was just too much, and he was told he couldn't refinance because the value ...
Report says 3.1 percent of Conn. mortgages overdue Newsday
Home loan troubles break records again The Associated Press
US Mortgage Foreclosures, Delinquencies Reach Highs (Update3) Bloomberg
Washington Timesall 668 news articles

Outside brokers make calls for bank
Trading Markets (press release), CA - 1 hour ago
Wachovia's refinancing initiative comes as the bank is eliminating 5000 of 11500 jobs in its mortgage unit to cut costs. Insiders describe a difficult work ...

Houston Chronicle
Baytown woman sues lenders, says she was a victim of predatory ...
Houston Chronicle, United States - Sep 4, 2008
Nanette Lewis refinanced her mortgage to get peace of mind. Instead, she says, she got a bait-and-switch, predatory loan and heartbreak. Now far less naive, ...

Foreclosures, Overdue Mortgages Increase Again
Wall Street Journal - 14 hours ago
Lower prices, in turn, make it much harder for borrowers to refinance if they fall behind on their payments. The drop in values also means people have less ...

Bargaining for a better loan
Sarasota Herald-Tribune, FL - 13 hours ago
The potential bargaining power of borrowers is greatest on a refinance, because typically they have no time limit on when the money is needed. ...

Mortgage Refinance Options to Think About
3x24 - Your Newspaper and News Magazine, Germany - Aug 26, 2008
Very few people in the world can afford to purchase a home in one payment so the world of mortgages and mortgage payments ‘came to be’. Mortgage refinance ...

What’s A Divorce Got to Do with Your Mortgage Refinance?
Corsavoo.com, France - Aug 25, 2008
When you’re the aggrieved partner, you silently wish that things will suddenly take a better turn, especially with an unpaid mortgage. Refinance plans have ...

Mortgage applications rose 7.5% last week: MBA
MarketWatch - Sep 3, 2008
Refinance applications increased an unadjusted 2.1%, compared with the week before, according to the Washington-based MBA. The MBA's government purchase ...
US mortgage applications rose last week -MBA Reuters
Mortgage apps multiply Inman.com
Mortgage Apps Up 7.5 Percent in Latest MBA Survey DSNews.com
United Press International - Originator Timesall 9 news articles

Wind Chimes and more...

Windchimes for great gifts!

High Risk Mortgage Lenders - Using a Sub Prime Lender Online