You can use amount you owe on loan to calculate what new monthly payment would be by using a financial calculator or an online mortgage calculator. You'll also need to know new loan amount (current loan amount plus closing costs, such as points, title and escrow fees - unless you plan to pay for them out of your pocket - new interest rate, and number of months of new loan).

To find out how much you can save with your home refinance mortgage, subtract your current monthly mortgage payment from new monthly mortgage payment. The remaining balance is your monthly savings.

After you get figure for your savings, divide it into total cost of loan, which includes points, title, and escrow fees. The resulting figure is number of months it will take for you to recoup your investment.

Then finally, determine how long you plan to stay in your home. If you plan to live in your home longer than it will take to recoup your investment, then to refinance your home is probably a good idea.

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c)These aren’t only methods for gauging popularity and reputation, of course. You can talk to people, go to chatrooms, conduct search-engine research, etc. Again, popularity and reputation aren’t everything, but keep them in mind while exploring lenders, both online and in real world of course.

4.The Short Form

The Short form is a term used to describe basic application that you initially fill out, when seeking a loan from a lender or institution.

a)Is it short indeed? Does it ask you for basic information, relevant information, and is it presented in a simple and concise fashion, perhaps no longer then 1 to 2 pages?

b)Is short form organized and appropriate? Does it make sense, is it simple to fill out, and is it easy to understand, and appropriate for an initial application?

c)Consider this form as an introduction to your lenders style. If form is simple, concise, and easy to fill out, this may tell you a lot about lender. On other hand, if form is complex, difficult, and requesting a little more information than your comfortable providing, this too might spell out a word of caution, and provide important information about your prospective lender.

5.Communication

Never underestimate importance of communication. How lender chooses to communicate with you from get go, might indicate choices lender will make later on in process.

a)Does lender have an “about us” page, and do they provide meaningful information about their business, such as how long they’ve been around, where they are located, their phone number, their physical address, and perhaps even their corporate structure? Or, are they a ghost in machine, providing little to no information about themselves?

b)You will ultimately be speaking with a live person on phone. How do they strike you? Are they pleasant, cordial, and polite? Are they low-key, helpful, and respectful? Or, do you see signs of pushiness, or over marketing?

c)Never make an immediate decision. Talk to 3 or 4 lenders, and then give yourself a pause to reflect on who provided best deal, and, who might be easiest and most appropriate to work with.

6.Points, Fees, Terms and Rates

a)Obtain several offers from competing lenders, and compare nuts and bolts.

b)Who offers you best savings? Who seems just too low to believe? Who is way too high to consider?

c)Check out current interest rates, and make some market comparisons. Our site has a free RateWatch updated frequently throughout day, or, you can easily find this information at any search engine or at other reputable websites online.

We’ve enjoyed providing this information to you, and we wish you best of luck in your pursuits. Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.

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