With interest rates at a historical low, this might be the perfect time for you to move forward with refinancing your mortgage. Mortgage interest rates are expected to remain low for at least the first half of 2013, but there’s a slim chance that they will go even lower. Unfortunately, lending requirements have tightened by a lot, so you must be well aware of your current financial situation and if mortgage refinancing is the best choice for you. Interest rates shouldn’t be the only factor to look at when deciding which refinancing lender to go with.
What to Look for When Considering a Refinancing Lender
- Interest rates. Receiving a low interest rate on your refinancing loan means you will save money. Based on the interest rate, mortgage loans can be divided into two categories. Fixed-rate mortgages loans come with an interest rate that will remain unchanged for the duration of the loan, as opposed to adjustable-rate mortgage loans that feature an interest rate that will change over time.
- Fees. The main reason you’re considering refinancing is to save money, so high fees will be detrimental to your goal, as sometimes you can even end up spending more money overall due to these high fees. Besides low fees, a reputable lender should disclose all the costs and fees before having you sign a contract.
- Customer service. A good mortgage refinancing lender will give you financial counseling and walk you through the steps of the process for free, making sure you understand what your rights and responsibilities are.
When thinking about refinancing your mortgage, it’s very important to have a firm grasp on your current situation. Being in control of your finances and understanding the mortgage refinance process will give you the liberty to shop around, compare mortgage refinance lenders and make the best choice for your financial situation. Remember, it never hurts to get quotes from multiple lenders. In fact, this is often the only way to accurately compare offers and get the best mortgage for your needs.
Here are the Top 10 Mortgage Refinancing Lenders
- Quicken Loans. With over 27 years of experience and over $70 billion invested in consumer loans last year, Quicken Loans is the largest online lender in United States. J.D. Power and Associates also ranked Quicken Loans “Highest in Customer Satisfaction for Primary Mortgage Origination” for 3 consecutive years.
- Bank of America. This multinational financial services firm was founded in 1998, and today is one of the biggest companies in the world, and the 5th largest bank in the U.S. Bank of America accommodates over 57 million clients, and it provides services such as consumer banking, mortgage loans, wealth management etc.
- Chase Mortgage. With a BBB (Better Business Bureau) A+ rating, Chase successfully provides its clients with an array of financial services. It is currently the biggest bank in the U.S., with assets of approximately $2 trillion. Chase was founded in 2000, as a result of the merger between J.P. Morgan & Co. and Chase Manhattan, and last year had 258,965 employees.
- Wells Fargo Home Mortgage. Along with J.P. Morgan Chase, Citigroup and Bank of America, Wells Fargo is one of the Big Four banks in the U.S. Part of Wells Fargo’s Community Banking segment, Wells Fargo Home Mortgage is the biggest lender of retail mortgage in the U.S., financing $1.8 trillion mortgages.
- U.S. Bank. A subsidiary of U.S. Bancorp, U.S. Bank is the 5th biggest bank based on deposit, with $243.8 Billion deposited, and provides consumers with multiple financial services, and lots of information and features about mortgages and refinancing.
- Citibank. Founded in 1812, Citibank, a subsidiary of Citigroup, is one of the largest international banks, operating in more than 160 countries. With 1,400 offices, of which more than half are located in the U.S., Citibank offers its clients several financial services, from personal banking, to lending, to wealth management.
- BD Nationwide Mortgage. The company offers a large variety of services, such as home loans, mortgage and refinancing, equity loans and more to clients, even those with poor credit. BD Nationwide Mortgage is known for having low mortgage rates.
- Sun Trust Banks, Inc. The company and its subsidiaries offer customers several financial services like mutual funds, mortgage lending, banking etc. Sun Trust has over 1,600 branches in southern U.S., and had assets which totaled $173.4 billion last year.
- PHH Mortgage. PHH services over 1,000,000 loans, and is one of the country’s mortgage solution leaders. The corporation was founded in 1946, and currently has over 5,000 employees.
- Flagstar Bank Corp. Based in Michigan, Flagstar Bank was founded in 1987, and it is currently one of the nation’s top mortgage lenders. The bank ranked “Highest in Customer Satisfaction with Retail Banking for the North Central Region” in J.D. Power and Associated Retail Banking Satisfaction Study two years in a row (2010 and 2011).
Refinancing your mortgage will save you money in the long run, but only if you do your homework and find the most suitable mortgage refinancing lender for you. As you can see, there are plenty of choices when it comes to mortgage refinancing lenders, so feel free to shop around until you decide which of these companies you will choose for your refinancing needs. Mortgage rates are still low. Refinance & Lower Your Payment!