THE District of Columbia (DC) houses the most powerful office in civilization today. Yes, the fact that Washington DC is part of it makes a big difference to the ‘brand value’ of DC even though the US capital is commercially not as vibrant as New York City. Mortgage and mortgage refinance opportunities are at a high in DC.
Refinance in columbia
There are many mortgage and mortgage refinance lenders and brokers in DC. While the supply of these services is a good thing for property-owners in the state, it can also misfire on you if you are not well-conversant with the basics of the refinance game. For, though mortgage and mortgage refinance professionals in DC are an ethical lot, there is always a chance that someone out there can take undue advantage of innocent customers. It is best therefore to familiarize yourself with the mortgage refinance basics if you are seeking to avail of this facility in DC. This article will attempt to do just that.
Avoid common mistakes
Mortgage refinance seekers commit some cardinal mistakes in the process of negotiating a deal with lenders / brokers. To ensure that you don’t commit the same mistakes, follow these rules:
- Don’t be carried away by the advertised ‘lowest interest rates’. These rates are applicable to people with above-average credit ratings. Most people have average-to-below-average ratings, and are therefore not entitled to the advertised rates. This is something you must know so as not to waste time arguing with the lender or broker. Also, know that your credit-rating cannot be changed overnight.
- Even if the ‘lowest interest rate’ is applicable to you, don’t go exclusively by it. Interest is only one component of the cost of your loan. There are many other upfront costs you have to pay, such as broker’s commission, property evaluation fee, penalty for premature termination of your original mortgage account, ‘points’, and so on. Taking all the upfront payments into account, the interest rate becomes just one cost-component, not the only one. Therefore, when you negotiate a refinance deal, make sure you talk to your lender/broker only about ‘APR’ (annual percentage rate) and not the interest rate alone.
- Low interest rate is not the only reason to opt for refinance. Often, it is not even a reason. You should opt for refinance only if benefits you. Common benefits include consolidation of high-cost debts into a single lower-cost debt, reducing monthly payments with or without increase in the duration of the mortgage loan, increasing monthly payments if your financial situation enables you to do so in order to reduce the duration of your mortgage loan, getting a lump sum of cash to meet with an immediate need, and so on. Often though not necessarily, these benefits can be achieved regardless of interest.
- Don’t take any lender / broker’s advice as the gospel. They have many clients like you, but you are special to yourself. After all, it’s your money. To make sure you are getting the best deal for you, do your own background research. This you can do through online resources. Get on to the Internet and visit websites such as www.mortgageloan.com, www.bankrate.com, www.erate.com, www.interestrate.com, and other similar sites. Use the online calculators available on these sites. Al you have to do enter data asked for by these calculators and, within seconds, get an idea of what the market can offer you under different loan types. If any of the results indicate a gain for you, depending on what you need in your specific situation, opt for it provisionally. Only then should you contact real-world lenders/brokers. A list of such service-providers closest to your place in DC can be obtained from the websites named above. Use your online findings as the basis of your negotiations. Though online results are not fully accurate, they are reasonably reliable provided you entered the correct data about yourself to the online calculator. Talk to three or four brokers / lenders, and select the best for you.
Mortgage refinance in DC is easy to obtain, but you can end up with a sub-optimal deal for you if you aren’t careful. While there are professionals out there to help you, it would not be prudent to depend solely on them. For one thing, never take low interest rate as the only justification for mortgage refinance. There are a few other costs of a new loan, including the cost of closing your original mortgage loan. All added up, it may dawn on you that ‘low interest rates’ alone do not make for a low-cost refinance loan.
The APR of a loan is the true indicator of the cost of a refinance loan. Know where you stand by using online mortgage refinance calculators available on websites of mortgage and mortgage refinance lenders in the United States. The websites you use need not necessarily be owned by companies based in DC: they can be based anywhere in the US, since interest rates and mortgage rules are federal issues. Once you know what the market can offer you, taking into account variables related to yourself as a borrower and your property in DC, then only you should talk to real-world lenders / brokers using your online findings as your base reference.