Search Refinance Mortgage Rates

With today's incredible advances in mortgage rate retrieval software systems, it is very easy to go online, enter your home loan scenario information, and click a button that will return all of the home refinancing options available to you. This is a great tool for those searching for new home loans, but is not the same thing as actually speaking with a loan professional.

Refinance Rate Factors

When you do your online search into a lenders "Home Loan Rate Pricing Engine", there are a number of factors that can change your "actual" loan scenario and the true resulting loan program that you are eligible for.

For instance, if you enter a 700 credit score for your scenario, but your actual score is really 600, the resulting program options will most likely be dramatically different. If you feel that your home is worth say $300,000, but it's current market value is really $250,000, then again, your true qualified refinancing program can be much different than the results taken from your original pricing engine scenario. This can go both ways too, many times a refinancing borrower may underestimate their credit score and/or home value.

Closing Costs Rolled-in or Not?

Another area that may cause confusion for borrowers conducting their own rate search through an online pricing engine is where closing costs and settlement costs enter the equation. Most people will enter their base loan amount for the loan scenario, without considering that closing costs will need to be added to that amount (unless the borrower wants to pay closing costs out of pocket). If closing costs are to be included into the new loan amount, this will impact the qualifying loan-to-value ratio, and may result in a new loan scenario.

Suggested Course of Action

Again, online pricing engine rates searches can be a great tool for refinancing homeowners, but does not take the place of a consultation with a loan professional to fine-tune your qualified loan scenario. A consultation will give the home loan borrower a more complete picture of the loan process and more solid bottom-line figures in most cases.

It is suggested that you call a loan advisor, before applying for a home loan online based upon initial pricing engine results. It is in your best interest to have the most accurate and current information possible before submitting your home loan application.

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