Thinking about getting an Iowa refinance loan? You’re not alone. Many homeowners in the state have recently chosen to refinance their Iowa mortgage to secure a lower interest rate, change the loan term, lower monthly payments, or borrow from equity. If you want to do the same and make sure your refinance loan truly pays off, you’ll need to choose a good lender.
Finding Lenders
When getting an Iowa refinance loan, a good place to start is with your current lender. While you may not get the best deal, you will have something to compare other offers to. Your next step should involve getting a referral for two to three other lenders. Referrals can be obtained from friends, family, and co-workers. You may also want to try searching the web. There are many online services that can offer you solid lending referrals and advice.
Comparing Loan Offers
Once you have located several lenders, you will want to begin making a few comparisons. Look at rates, points, terms, closing costs, and lending fees. Do your best to make apple to apple comparisons. For example, compare fixed rate loans to fixed rate loans and adjustable rate loans to adjustable rate loans.
Protecting Yourself from Predatory Lending
Though the state of Iowa is working to enforce stricter anti-predatory lending laws, there aren’t many regulations that are currently in place to protect borrowers. This is why it is so important for you to take time to make comparisons and find a lender who is reputable. You are the only one who can protect yourself and your finances. If you have any questions about a particular lender, or if you need advice on obtaining an Iowa refinance loan, you can contact the Iowa Division of Banking.
By: Jane A. Hale
Posts Tagged ‘Fixed Rate Loans’
Iowa Refinance Loans – Choosing a Lender
January 28th, 2010California Refinance Loans – Refinancing Tips to Help You Save
November 5th, 2009
Many homeowners in California are scrambling to refinance their current home loan before interest rates get too high. Some are hoping that a California refinance loan will help them get rid of their adjustable rate or interest only loan. Others are hoping to move from a high fixed rate into a low adjustable rate or hybrid loan. If you are considering a California refinance loan, here are several refinancing tips to help you save:
Refinancing to a Fixed Rate Mortgage
California refinance loans with fixed interest rates can be very beneficial to homeowners who have found themselves in trouble due to a hike in the rates of their adjustable rate mortgage or interest only loan. Refinancing is also beneficial for those who got their current fixed rate loan when interest rates were high due to bad timing or credit problems.
Refinancing to an Adjustable Rate Mortgage
Fixed rate loans are great for those who like consistent payments, but for California homeowners who don’t plan to stay in their home for much longer or for those who need an instant drop in their payments, an adjustable rate California refinance loan may be the best option. This type of refinance loan allows you to take advantage of low introductory rates. If you have fair to good credit, you could get an interest rate as low as 5 percent on a California refinance loan.
Refinancing to a Hybrid Mortgage
A hybrid loan offers the best of both worlds. With this type of California refinance loan, you can take advantage of low adjustable rates during the first five to ten years of your loan before moving to a more consistent fixed rate. You will want to be careful though, not every hybrid loan has the same terms.
By: J. Hale