-
- 1. Make sure to compare and understand the loan terms of
- different loans. Compare the APR (Annual Percentage
- Rate) which takes into account both the interest rate and
- the points and fees on the loan.
-
- 2. Be cautious of anyone that claims that a low credit score
- will have no impact on an interest rate. If an offer sounds
- too good to be true, make sure to get it in writing.
-
- 3. Make sure to get a written estimate from a few lenders,
- including the interest rate, points and additional fees.
- Be warned of previously undisclosed fees that appear at
- the closing table.
-
- 4. Ensure the accuracy of any document you sign, and never
- allow anyone to enter information you know to be false.
- Furthermore, if a date or other information is incorrect or
- incomplete, have the lender fix it before you sign it rather
- than assuming they will fix it later.
-
- 5. Be sure to ask about any additional fees that may be
- required. For instance, beware if you are told that a single
- premium credit insurance is required to get a loan or that
- the payment of a fee will help you get the loan approved.
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Make sure that you only refinance when the total cost of refinancing makes sense relative to the savings you will generate from the lower interest rate during your expected remaining ownership of that house.