Looking to Refinance? Check with Your Loan Servicer First

You’ve been making all your payments on time; your credit score is great, and now you may be thinking, “it’s time to look for other options”. Whether you’re looking to reduce the length of your mortgage, bargain a lower interest rate or even extend the length of your mortgage, refinancing offers a great solution.

Before you sign up with another lender, you may want to consider contacting your loan servicer first, especially if you have had a decent experience with them in the past.

What’s the Difference?

Today more than ever, borrowers have the chance to take advantage of the flexibility in interest rates and closing costs when looking to refinance. Sure, refinancing with another servicer may not cost you an upfront down payment, but contacting your current servicer can save you much more. When you contact your current loan servicer, you have the ability to not only get valuable insights into your loan, but it could also save you a ton of money and time.

Reduce Closing Fees

On average, a broker’s fees amount to at least 1% of the loan amount. To put this into perspective, that would cost you, the borrower, an additional $4,131 on a $413,096 15-year term loan. 

Add to that, these closing fees typically can include anything from the loan origination fee, attorney fees, appraisal fees, recording fees, title search fees and more.

By going straight to your current mortgage servicer through AboutMyMortgage.com, you have the opportunity to discuss financially favorable alternatives to refinancing. This means you can potentially avoid high closing costs thatyou would otherwise incur by refinancing with another lender. And this leads to additional savings straight into your pocket.

Save Time

With your current servicer, they already have your records, payment history and corresponding information on file. This eliminates the hassle of going through a typical loan process all over again. And, it is very likely that you, the borrower, can take advantage of this ease with your servicer as they too are looking to keep you in their client base.

With this win-win situation there is always room for negotiation.

Avoid Making an Uninformed Decision

By going directly to your loan servicer, you can find out more detailed information straight from the source without having to get sold to. Remember that your current service has a vested interest in keeping you as a customer. While refinancing may still be a good option, your current servicer can explain other options including amortization, loan modification, home equity loans, and even the advantages of keeping your current loan.

When it comes to refinancing loans, a small amount of research can save you a ton of time and money in the long run.