If you are looking for low rates the best strategy is to shop around, all you need is one lender to offer a lower rate once you get that lowering rate, you will see that some other banks with higher rates will try to match.
When you are looking for the modest mortgage refinance rates it is no longer about who has the best mortgage refinance rates but about how good you are at shopping around and your negotiation skills
A friend of mine once spoke to their loan officer and he offered them a 3.25 from their current 4.125. My friend then reached out to HSBC and they had the same rate. He then asked chase who told him that their best rate was 3.6 with a $750 closing credit.
As soon as they told them that was really high since they already were given 3.25 from 2 other places they were told that they would match and still give him the closing credit. He then went back to his loan officer and was told that they would go to 3.125. Moral of the story, shop around. This was for a 30 year if you have a 20 year it should be in the high 2s.
Who Has The Best Mortgage Refinance Rates?
Basically, on a refinance you should not pay to get a great rate. This is so that you can refinance again later if the rates keep dropping. Take a slightly higher than par rate to cover your hard costs so that your payback period is a few months to year at most.
The only exception is if you intend to hold this particular loan forever and you are willing to pay out of your pocket for once in a lifetime rate.
Thus has never struck me as worth it because I can invest the money I’d use to do this in something that would handily outperform whatever a once in a lifetime rate would be, plus I’m never really convinced that I won’t be refinancing or selling again over a 30-year period. Also, paying extra principal to pay off faster works against you if you have an excellent rate.
3 Best Mortgage Lenders
The three places I have seen right now with the lowest rates are Lending Tree, Opendoor and Better.com. Open Door has 1k for closing costs but I think 1 point on their rates, you have to talk to them
This is more like the craigslist of mortgage markets, If you are looking for the best rates in the market this is the best place to go to. Their selective process is very great and they boast of helping over 10 million Americans and with over $6 Billion borrowed at LendingTree.com.
They will make you fill in a short form which will ask the sticky questions such as social security number, date of birth, password creation.
Pros and Cons
The only problem with lending tree is you will get so many lenders calling you to do business with you and offer you refinance options.
A friend joined lending tree looking for mortgage refinance immediately after signing up she got over 47 calls in 15 minutes with offers
If your credit is great you will get a great rate from your local bank. Most people aren’t that lucky and need to shop around.
In fact, even if you think you got a great rate, it nearly always pays to shop around more and lending tree maybe the best option for you.
There is no harm having 10 different lenders for a mortgage, and is in fact encouraged.
When trying to understand the concept of Open Door its important to remember that opendoor only operates in 20 US markets (large and growing areas) This allows for more of a commodity type price for the house being bought. Also, because they are growing areas, it allows opendoor to get the small percentage of price appreciation when they resell.
Someone in a small town would probably be correct to question how this could work efficiently in their town. Opendoor is currently operating in areas like Raleigh, Durham, Atlanta, etc
According to https://themortgagereports.com/ review on better.com has a reputation for low rates, next-to-nothing fees, and a seamless online experience. “There are relatively few lenders that consistently offer lower rates or closing costs than their competitors. But Better mortgage may be one of them.
Along with consistently low mortgage rates, Better offers substantially lower fees than other lenders. It even eliminates the pesky “origination fee” altogether (which is typically around 1% of the loan amount).”
Their only problem is that they hire the cheapest and most inexperienced staff in the industry meaning if you encounter a problem you are most likely to be passed around 6 different people for your problem to be solved.
Better is geared to a more tech oriented borrower that doesn’t need a lot of hand holding. I like the fact that you can upload documents at 10pm directly from saved files versus printing and copying papers that then have to be delivered to some broker’s office
Honestly if you can save a file and attach/drag it to the better “task portal’ you will be fine Using a local bank or broker might result in a layer of bureaucracy that would only slow the process, and of course, another hand that would to be greased at my expense.
Overall, I would give better an A- or B+ , taking points away because of the inexperience of some stuff who would ask for documents they already had.
I still believe the best strategy to getting the best rates is to shop around and then negotiate your way down with the lender you prefer. What do you think is the best thing to do when you are looking for best mortgage rates. Please leave a comment below if you are willing to help others in this area or if you have any question that you may need help with