Main Content

Finding the Right Lender to Refinance With Isn’t As Difficult as You Think

The Real Deal

Everything Real Estate in the San Fernando Valley
Monday May 3, 2021
Finding the Right Lender to Refinance With Isn’t As Difficult as You Think

We’ve all seen the commercials, and we’re all familiar with the basic concept of refinancing; it has a chance to save us money. However, many people simply assume that refinancing with the lender who made the initial loan is the wisest course of action – this is not always the case. This article will briefly discuss the issues a borrower should consider when deciding who to refinance with.

Like all things, it’s a good idea to survey the field before committing to any course of action; lenders are competing for your business because every refinance they take away from a competitor is more money in their pockets. There’s a good chance they will have attractive offers that would otherwise miss out on based on blind loyalty (which your current lender is banking on).

While surveying the field, be aware that interest rates aren’t the only thing to consider; closing costs on refinances average approximately ($3,400), so finding a lender with low closing costs is a factor to consider. Moreover, refinance shoppers should pay attention to whether or not you are required to prepay in order to get a lower interest rate (these are called “points”). Armed with this information, you will be able to make the best decision possible.

Of course, it’s possible that your original lender really is the best option. Convenience is worth something and refinancing with your lender will likely be more convenient since they already have your financial information and evidence of your ability to pay; this could speed the whole process up significantly. Refinancing with your current lender likely means you will pay less in fees as well. Additionally, there are no rules against trying to negotiate more favorable terms with your current lender, and you may have more success given your pre-existing relationship with the lender.

If your research leads you to the conclusion that another lender is a superior option, and your current lender won't match terms, or sweeten the pot, you need to be ready to jump ship and pursue a better option. At the end of the day this is about your long-term financial well-being, and loyalty won’t take care of your retirement account.

At the Chernov Team we understand that knowledge is power, and knowledge of how to maximize the value of a refinance is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.

08

Stay Connected

Sign up to Access:

Exclusive private listings S.F. Valley market insights VIP events

    Thanks for signing up!
    By signing up you agree to our Terms & Conditions

    More Blog Posts

    To Love
    Monday July 26, 2021

    In June 2021, the volume of new home sales dropped to its lowest level since the onset of COVID-19 in early 2020. T...

    Read Full Post
    Friday July 23, 2021

    While June home sales were lower than expected, they still represent a rebound after 4 consecutive months of declin...

    Read Full Post
    Wednesday July 21, 2021

    According to date released by the U.S. Census Bureau (“USCB”) on Tuesday, July 20, 2021, building permits dropp...

    Read Full Post
    Monday July 19, 2021

    In August 2020, the Federal Housing Finance Agency (“FHFA”) announced that Fannie Mae and Freddie Mac would cha...

    Read Full Post
    Friday July 16, 2021

    It appears that the rate of appreciation in home values, despite slowing down, will continue to increase for the ne...

    Read Full Post
    Wednesday July 14, 2021

    We’ve been seeing a lot of discussion about inflation recently, and that discussion is warranted; housing costs ...

    Read Full Post