Yesterday, a pertinent message to loan holders was published on The Mortgage Reports on the importance to evaluating your current loan situation right away to see if you may be in need of a refinance. Why? If you’ve held your current loan for three years or more, and your credit rating is reasonable, there are two very important reasons to do this as soon as possible.

Reasons to contact a lender right away

1. Interest rates on mortgage loans are extremely low right now, and it is very possible that you are currently paying a higher rate than you should be.  If so, a refinance could save you a lot of money. It’s a good idea to look and evaluate your options. Otherwise, you could be leaving money on the table.
2. Many financial institutions have downsized during recent months. If your lender is no longer with the same institution, and his position hasn’t been replaced, it is possible that no one is managing your loan. Without calling your lender, there is now way to know whether you might be carrying an orphaned loan, which means no one is there to call you when rates fall, policies change, or mortgage guidelines change, which can be a real dissadvantage, according to The Mortgage Reports.
3. The longer you wait to evaluate your options, the more limited your options may become. Many loan options that were popular in 2007 are no longer being offered by lenders in 2008, and the list of retired mortgage options continues to grow.

So pick up the phone and call. And if you determine that this is a good time to refinance, request a quote from your current lender, and from a few other lenders as well. Only by comparing options and allowing a little healthy competition into the mix can you place the odds of getting the best deal in your favor.

Tags: mortgage refinance, refinancing options

This entry was posted on Wednesday, January 16th, 2008 at 9:18 am and is filed under Daily Pick. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.