Getting a Tennessee refinance loan can save you thousands of dollars over the life of your loan. There’s only one catch—you need to get a good deal on your refinance. It is the only way to make sure you get the absolute most out of your savings. Below is a list of three common refinance mistakes that will be sure to cost you money. With just a little bit of time and effort, you will easily be able to avoid these refinancing pitfalls.
Not Researching Rates
It is imperative that you get a good interest rate on your Tennessee refinance loan. To do this, you will need to research average rates and get rate quotes from several different lenders. This will allow you to make comparisons and be confident in the rate you finally choose to accept. Currently, fixed rates on 30 year Tennessee refinance loans average 5.45 percent.
Choosing the Wrong Lender
There are many reputable lenders who deal in Tennessee refinance loans. Unfortunately, there are also a lot of scammers. Tennessee has a serious problem with predatory lending. As of January 2007, a new law will be in effect to help protect borrowers. The law applies to high cost refinance loans and prohibits fraudulent practices. Even with this law in place, you are the only one who can protect your finances. Be sure to take time to find a lender who has your best interests at heart.
Not Paying Points
If you plan on living in your house for a few years and you have the money to do it, it only makes sense to pay points on your Tennessee refinance loan. Paying points upfront can significantly lower your interest rate and make the refinance more worthwhile.
By: Jane Hale