Harrisburg, PA – February 20, 2008 – The downturn in the housing market has led the Federal Reserve to cut interest rates to their lowest point in recent history. Before taking advantage of the current mortgage rates the Pennsylvania Association of Mortgage Brokers (PAMB) recommends that consumers meet with a licensed mortgage professional to discuss how they might benefit from refinancing. Consumers should consider the following tips prior to moving forward with the refinancing process:
- Be aware of all fees and closing costs that you will incur – It is important to understand that refinancing your mortgage is not free. Consumers need to ask their mortgage originator to provide, in writing, all costs that will be incurred in order to complete the refinancing process.
- Understand the new program that you are getting into – If your old loan was a “fixed” program and your new loan is “adjustable,” make sure you have a clear understanding of how much your new monthly mortgage payment will be, and the exact period of time that the monthly payment is good for.
- Determine exactly how much your monthly payment will be reduced -Consumers should compare the total remaining payments of their existing loan to the total payments required on the new loan request plus closing costs to determine the actual savings.
- Shop and Compare – Consumers should call two or three originators to compare interest rates and the total cost of closing the refinance to the terms offered by their current lender.
- Ask how long the offered rate is good for – Whatever rate or term your mortgage originator offers for the refinance, be sure to get the information in writing, and also ask for a written guarantee of how long that rate is good for, i.e. 30 days, 45 days, etc.
- Ask about the credentials of your mortgage originator – Ask your mortgage originator if they are a member of the Pennsylvania Association of Mortgage Brokers, whose members adhere to a strict code of ethics.
“Refinancing your existing mortgage can result in a sizeable reduction in your monthly mortgage payment and greatly increase your quality of life,” said Frank Bowersox, President of the PAMB. “Mortgage rates are lower than they have been in years and consumers should take advantage of that.”
The Pennsylvania Association of Mortgage Brokers is composed of licensed mortgage professionals who strive to attain the highest degree of excellence and customer service available. PAMB members also subscribe to a code of ethics. For more information, visit www.pamb.org or call the Association office at (888) 311-PAMB.
