Mortgage rates are nowadays dropping to record lows, but a lot of people still don’t want to take advantage of them and refinance their mortgages. The reason comes as no surprise at all. It is one of the most annoying things about mortgages: the closing costs.
Closing costs can be real deal breakers. Because this extra amount of money that you have to pay can sometimes turn even a really good deal into something not worth the effort. Fortunately, there are ways to lower these closing costs, so that you can get the refinancing that you want.
Choose your lender wisely
Different lenders offer different interest rates, terms and costs. That’s why, if you want to have lower closing costs, you need to shop around. You already do it when you want to get a new car, or a new TV, so you shouldn’t be afraid to go shopping for lenders as well. Don’t just stop at the first offer that you receive. Visit multiple lenders and see which one has the best deal for you. This is the best way to save money on everything, not just closing costs.
Being loyal has its benefits
There are a lot of lenders out there and they’re all competing for your business. Changing lenders is a good way to save money. But, sometimes, you can also save money by staying put.
What you need to do is talk to your lender. Let them know that you found a better deal somewhere else. They might want to make you a counter-offer, and they might be willing to waive some of the fees or even pay them for you, just to keep you as a customer.
Negotiate with your lender
Some closing costs are sometimes not negotiable. But this doesn’t mean that you can’t save some money somewhere else. Again, you need to talk to your lender. Ask them to waive the application fee and processing fee.
And you can also lower the amount you pay for title insurance. Although your lender might guide you to a certain insurer, you should shop around and find one that best suits your needs.
Refinancing can save you a lot of money, but you have to work for it. You have to do your research and know exactly what you’re getting yourself into. Otherwise, not only will you not save money, but you’ll even end up throwing money away.