Online Home Mortgage Refinance Companies.
You’ve probably heard the advertisements on the radio or seen them on the television or in the newspaper:
$170,000 Loan Under $560/month.
Rates at Historic Lows.
Whether known as “Online Home Mortgage Refinance Companies” or “Online Home Loan Refinance Companies” or “Online Mortgage Refinance Companies”, they are all part of a relatively new type of online refinancing network. And they are Hot.
Millions of people are finding themselves paying too much for their home mortgage. This may be because they financed their home back when interest rates were much higher than they are now. If you have an interest rate over 6% then you are paying too much. Online Home Mortgage Refinance Companies make it quick and easy to get the lowest possible interest rate on your home. This typically saves a family hundreds of dollars a month.
How they work.
Most of the online home mortgage refinance companies work something like this:
You fill out a brief 1 or 2 page online form. This can normally be done in just a few minutes.
The online home mortgage refinance company sends this form to its network of banks.
You receive back a return email. This contains the best offers from the network of banks.
You select the refinance offer you like best (normally the one with the lowest interest rate).
It is really that easy. If you like any of the offers you just reply to the email, indicating which offer you want to accept or to request more information. And all of this costs you nothing! There should never be an application fee.
Not all home mortgages are the same.
There are 3 bits of information about your loan that are very important:
Amount Financed: The amount of credit provided to you. This will normally be the amount of the loan you will receive from the lender.
Finance Charge: The dollar amount the loan will cost you. This is the interest you will pay on the loan.
Total Payments: The total amount you will have paid after you have made all payments as scheduled.
These figures can vary wildly between lenders. You should treat these refinance offers as you would a new car … shop around for the best deal! Someone looking to secure a great home mortgage should fill out applications for several different Online Home Mortgage Refinance Companies, then accept the one with the lowest interest rate.. Why pay more than you have to?
Home refinance loans at your fingertips.
It used to be that to get quotes to refinance your home you had to go to several banks and sit in a lobby with many others. Fortunately this is no longer the case. There are now entire online companies that exists solely to administer these loans. Now the entire process can be completed quickly and easily from the privacy of your computer.
Fraudulent websites & Potential Pitfalls.
Unfortunately, as with any innovative idea come the scammers. Hundreds of “home refinance loans” websites have popped up, claiming to offer the best deals. Many charge excessive interest rates for even the smallest of loans. Other problems are:
1. Charging application fees (NEVER pay a fee to apply)
2. Excessive loan fees
3. Hidden charges
4. Zero help or customer service
Many of these SCAM sites won’t even respond to customer requests. Eventually they get shut down due to too many complaints, or the State Attorney General forces them out of business. But the borrower is already locked into a bad deal, and the SCAMMERS just open another site under a different name in a different state. It’s definitely “buyer beware”.
Yes, you may find money in your attic (lower monthly payments)
If you can stay away from the SCAM websites, getting your home refinanced online through one of these home mortgage refinance companies can be a great way to get the best possible deal with the least amount of work.
Before applying online for a home refinance loan, you should be sure that the website satisfies the following minimum requirements:
Well organized, easy to navigate sites.
Helpful resources available for newcomers.
Short application form that can be completed in minutes.
No application fees.
No hidden charges.
Less than perfect credit not a problem.