When it comes to refinancing your mortgage, choosing the right company to work with makes all the difference. It’s important to have a clear idea of what you are looking for when you set out to refinance your home. Sometimes, a great deal is too good to be true.
In December 2019, interest rates have recently reached a historic low. This is causing borrowers to want to refinance their existing mortgage. Often times, they will turn to their banking institution, current mortgage company, or big-name lenders. The opportunity to refinance is a great idea for many homeowners, however, there are things you should look out for.
A low rate may not be all that it’s cracked up to be. For example, a low rate should not come with a big buy down fee unless the borrower requests that option. Other lenders will offer a low-interest rate, but not disclose to the borrower that it will cost them thousands of dollars to buy down the rate. This happens when the borrower reaches out to their current mortgage company or finds a big-name lender online. We always suggest shopping around, especially when you are refinancing. Mortgage rates can vary by .25% to .75% which can save thousands over the life of the loan.
As you can see, it’s important to look around when it comes to finding the right lender for your refinance. A lender may offer a low rate, but it may not be the lowest you could qualify for. Instead of wasting time researching various mortgage companies, let the mortgage brokers at Indigo Mortgage Colorado find the lowest interest rate possible for you. We specialize in finding the best rates for Colorado residents. Shopping your mortgage locally is always a great idea!