Mortgage Lenders for Refinancing
Mortgage refinancing involves taking out a new loan to pay off your existing home mortgage. As of April 2016, mortgage rates were hovering near record lows. Refinancing makes sense if you took out your existing mortgage when interest rates were much higher. For homeowners with good credit and payment histories, 30-year mortgages are available for under 4% interest, and 15-year mortgages are under 3%. If your current rate is 5% or above, you could save thousands of dollars refinancing even after accounting for various fees, such as mortgage origination and a home appraisal.Another reason to refinance is if your current mortgage has an adjustable rate, meaning the interest rate goes up and down based on economic conditions. These loans sound attractive when you take them out, as their initial monthly payments are usually lower than a comparable fixed-rate mortgage (FRM). However, adjustable-rate mortgages (ARMs) often come back to bite borrowers later, not to mention you lack the security that comes with knowing your payment will never increase. When market rates are at record lows, it makes financial sense to refinance an ARM into an FRM. If you feel refinancing could benefit you, several companies stand out as offering not only the most competitive rates but also the best service and flexibility throughout the refinancing process.
Quicken Loans
Quicken Loans is a Detroit-based lender that has become a household name thanks to an impressive branding effort throughout the 21st century. The company is known for having competitive rates and several unique mortgage products not offered by its competitors. Its YOUR mortgage product offers repayment terms that you can customize beyond the typical 15- and 30-year mortgages provided by most companies. You can choose a term from eight to 30 years in one-year increments. This way you can lower your rate and payment while keeping the time remaining on your mortgage the same.For borrowers who wish to refinance online without dealing with a salesperson, the Quicken Loans Rocket Mortgage makes this possible. Everything from the initial application and credit check to scheduling your home appraisal is done online. If you get stuck along the way, you still have the option of calling a toll-free number and speaking to a live loan officer. Market research company JD Power named Quicken Loans the number one mortgage company for customer satisfaction in 2015. As of April 2016, Quicken maintains an A-plus rating with the Better Business Bureau.
Guaranteed Rate
Guaranteed Rate is another company that emphasizes the ability for borrowers to conduct a refinance completely online. A unique benefit offered by the company is free credit reporting upon initial application. When you submit your information through the company's website or smartphone app, you receive your credit score from all three major bureaus for free. At this point, you can even choose your interest rate and fee structure based on what your credit qualifies you for and lock it in early in case rates increase. The company's status as an online lender means it has low overhead, and it passes these savings to its borrowers. Guaranteed Rate, as of 2016, was rated A-plus by the Better Business Bureau and received majority five-star reviews on finance and real estate websites such as Bankrate.com and Zillow.com.
