So you are thinking of refinancing your mortgage. If this lowers your interest rate, you should opt for it. Yes, we know you are looking out for the best deal that you can get but did you know that you should also consider the financial institution from which you are planning to get the mortgage? With every different sort of institution, you get a different refinancing experience. We’ll go over some of the options that you have in this regard.
A large bank will not charge you an excessive fee because they already have business and provide many loans. Are there any downsides? Yes, you will not receive enough attention from them. Plus, you will probably be talking to a different rep every time and may not be that well aware of your financial situation. Moreover, large banks may also not be flexible with you, and you will have to take what they offer.
We suggest that if you are a self-employed individual or do not have a very good credit score, do not refinance your mortgage through a large bank.
Unlike a large bank, a community bank can flex their terms to a certain extent. In most cases, they hold the loans rather then sell them off on the secondary market, which is the reason behind the flexibility. Yes, there are drawbacks. The loan fees are often higher and the reps do not have a lot of experience.
The lending experience with a credit union is very similar to that of a bank, but you must belong to the union. Only then will you be allowed to borrow money. The agents at these unions give you plenty of attention, while also offering you flexible terms. If you are self-employed or have a credit score below par, you may still be able to get a loan with these unions.
As for the cons, these include the high fees and the limited range of mortgage products.
Online Only Lenders
We know some borrowers who prefer online lending because they are not so comfortable in discussing their credit problems in person. However, no proper relationship develops which is why a real estate agent will not recommend these to you.
So from which financial institution will you get your loan refinanced?