Tag Archives: Mortgage

Understanding Mortgage Refinancing Costs for Draper Homeowners

Mortgage Refinance being encircledFinance expert City Creek Mortgage states that typically, how much mortgage refinancing costs vary in Draper depends on the loan amount and its interest rate, your credit score, and the lender.

It will be useful that you note this early in the article that, of the three, the latter is the factor that you can work around most comfortable while negotiating a fairer refinancing deal.

Some More Light into That

Any home refinance’s closing costs will include escrow and title, lending, appraisal, credit and insurance fees, as well as points and taxes. Should the property in question have enough equity, the owner can choose to either add these closing costs to the mortgage loan balance or cash out the saved equity.

But, while this latter case will lower the mortgage balance, you will need to chip in some money at closing to cover these expenses:

1. Appraisal Fees. Your appraiser can charge you a higher or lower figure depending on the type of your property, and whether it is an owner-occupied or investment property.

2. Credit Fees. These are charges for processing accurate credit reports from three recognized and reputable bureaus so that you get better interest rates as a homeowner.

3. Escrow and Title Fees. These are service fees that title companies charge to act as independent third parties in facilitating mortgage transactions.

4. Lending Fees. The lender charges these fees to cover all processing and administrative matters, including underwriting and document preparation.

5. Points. These include discount fees, which homeowners pay upfront to lower the mortgage loan interest rate; and origination fees for compensating mortgage originators during the transaction.

As a homeowner in Draper, you can avoid these additional fees to your current loan balances if yours are no-cost mortgages. You can, however, still opt to take higher interest rates so that you cover the closing costs.

But, it is imperative that, before you settle on which of the two, you engage a trusted mortgage planner to help you determine which option will work best for you.

Why Hire a Mortgage Broker

cBuying your very own home is a big financial responsibility that you must prepare for. While it feels good to buy a property and have a place to call your own, you shouldn’t rush this purchase or else you may fall into debt and find it hard to recover.

It’s wise to get the services of a mortgage broker to help you find the best rates and terms based on your credit standing and financial status. Here are some benefits you’ll get when you hire a broker.

Saves You Time and Effort

You don’t have to go through the mundane and lengthy task of calling dozens of mortgage lenders and banks and then compare their terms and rates to know which one is best. With the help of a mortgage broker in Phoenix such as prmiloans.com, you don’t have to do this anymore because they work with all types of lenders. They can refer you to the ones that fit your needs and they can help you evaluate the terms. A broker can also help you avoid burdensome payment terms buried craftily in mortgage contracts.

Gain More Access

Because of their years of experience, brokers are usually called the gatekeepers to some lenders so they could only work with the most suitable clients for them. This means working with a broker can help you gain more access to the best retail mortgage. Because of their history, brokers can also get you special rates from these lenders.

Savings on Certain Fees

Working with lenders comes with certain fees such as application fees, appraisal fees, and origination fees. Fortunately, a mortgage broker can help waive some, if not all, of these fees. That is an automatic savings of hundreds or even thousands of dollars.

These are just some of the many benefits of working with a mortgage broker. When you start the home buying process, don’t hesitate to hire a mortgage broker to help make the process easier.