Tips to Save Money while Refinancing your Mortgage

8:28 AM Posted by Jason

tips on Refinancing your MortgageTo save money in mortgage, we opt for refinancing the existing mortgage. This way we can get lower interest rates and also more user friendly terms. But if we want we save more cash if we follow some tips. If we follow the tips, we can be sure that it is going to help us by cutting the fees and costs further.

Close Inactive Cards

First close all the inactive or useless credit card accounts, this can help you having a good credit score and also help you to get lower interest rates. Right now inform the credit card companies to close those junk cards. In the next credit report you will find that you have closed the credit card account by yourself not due to bad credit. After getting the credit report also check that there is no wrong information about your credit.

Try to avoid the PMI

When you are going to borrow 80% of current home value, then you have to pay a huge amount as private mortgage insurance. The lender can add it to your refinance bill smartly as hidden cost. So, check whether you have to pay the PMI or not.

Opt for short term mortgage

Choose short term mortgage as it can save a lot of money in interest rates. Short term mortgage can also provide lower interest than longer term mortgage. This can save big amount of money.

Know about the fees

Many mortgage loan contains many fees which generally not declared before taking the mortgage, these are kept hidden. But by the law, the lenders are bound to disclose all the fees within 3 days of the mortgage application. There can be fees like – courier fees, document preparation fees, administrative fees, etc.