It is no secret that the Internet has changed the way future homeowners obtain their mortgages. In the same vein, it is also a well known fact that the online marketplace is seeking to woo the business of those in need of a refinance for their exiting loans. Like with any other online business venture, online mortgage lenders and even heavily marketed refinance offers are not always what they purport to be and the homeowner will be wise to be very careful before signing on the dotted line.
Thus far the best way of doing business online for the homeowner wanting to refinance is to contact the well known lenders and see what their refinance products are. Some, such as e-Loan actually work with different lenders and will find you the best deal possible. Individual mortgage lenders also offer online application processes, and it is up to the buyer to shop smart and beware.
It is interesting to note that sometimes you will save money by doing the entire refinance process online versus walking into your bank. The reason is obvious: there is less overhead, and the decrease in operating expenses can be translated in better deals when it comes to interest rates for mortgage loans. At the same time, failure to read disclosures carefully may cost you dearly, especially in the little nickel and dimes fees that add up and may eventually cost your thousands more than you would have had to pay at the bank where you already have established a business relationship.
Diligently comparing different loan products, the features of various loans, and also reading the fine print is the basis for getting a great deal on an online refinance. If you do not feel comfortable doing business like this or if the legalese of the documents is overwhelming, set up an appointment with a mortgage broker at your local bank and ask for explanations. Once you know exactly what you are dealing with and what the bottom line figures are, you can make an educated choice with respect to your mortgage refinance.
