Mortgage Refinance Tip

Securing good terms and interest rates when refinancing your home can be quite a cat and mouse game between you and your mortgage broker. You obviously want the lowest rates, fees and closing costs possible but there's one problem. The more you pay in interest, closing costs and other fees, the more commission your broker receives.

Just like when you go to purchase a new car, the more prepared and knowledgeable you are about the sales process, the better the deal you get will be. The best home mortgage refinance tip I can give you is to say no.

What does that mean? Simply put, the first offer you receive will never be the best one. Your mortgage broker is well aware of how time consuming and frustrating trying to refinance your home loan can be. He knows that the last thing you want to do is go through the process multiple times. The first offer he will make to you will not contain the lowest rates, and will probably have some slightly to greatly inflated fees.

Saying no to an offer, and thanking your broker for his or her time will let them know right away that you are not desperate. Many people looking to refinance are. They are in bad need of cash or have taken a cut in income and need to lower their payments immediately. Some brokers will try to take advantage of this fact.

It is important to note that many brokers are decent, hard working people who will offer you their best deal up front. If this is the case, you saying no will not have any ill effects. If the broker does not make a counter offer that is better, you can always go back and say that you changed your mind and have decided to accept the terms and go ahead with the refinance. Your broker will be happy you did.