Three risk factors which influence refinance rates in your location

According to Digital Transformation Solutions provider Metasource, closing disclosures will pose challenges to mortgage quality control. Refinance rates vary across the United States where some areas have more expensive mortgage refinance rates as compared to others. This leads people to look for different ways in which they should proceed with their refinancing process.

Since Home mortgage refinance rates vary across different states and here are the risk factors which causes them-

1) Foreclosure Laws-

● Debt which gets accumulated over your mortgage is calculated by the lender. The ability of the lender to recover the costs in case you have defaulted on your mortgage payments plays a role in the calculation of estimated refinance rates.

● Different states can allow judicial foreclosure, non-judicial foreclosure or trustee sales in the event of a payment default. Non-judicial foreclosure does not take an individual to court so it makes a cheaper option for the lenders to recover the costs.

2) Mortgage Default Risk-

● In some states, there are increased chances of defaulting on your mortgage due to the economies. States which have weaker economies have more instances of individuals defaulting in their payments.

● Due to this reason, lenders and investors charge a higher mortgage rate as a compensating factor for taking the risk. This is one of the reasons that certain states can have higher mortgage rates in comparison to others.

3) Early Payoff Risk-

● The local real estate market strength, availability of credit and mortgage rates have an effect on the early paying off a mortgage loan.

● When property values increase, homeowners have an interest in refinancing and cashing out on equity from the combination of first and second mortgages.

● This increases the risk for lenders as the mortgage is paid before they could gain profit. Consequently, lenders in some states will have a higher mortgage rate.

States in different parts of the United States have variable conditions in mortgage refinancing rates. Before, you go for a home mortgage refinance loan; you can take the risk factors into account.

At About My Mortgage, we help you in making an informed decision. To know more about refinance rates and the things you should consider before going for a refinance, visit our website at