Home refinance tips...save you money

• The process is easy
• You can apply online
• The company is professional...not all are!
• You will save money every month by taking action
Should you refinance? Find out now!

My wife and I recently, Feb 2010, refinanced our house. We are saving $140 a month in principal and interest, going from a 5.675% loan to a 5.375% 30 year fixed rate loan. We did this with no closing costs to us...in fact we got a check for $66 and get to skip a payment. This is all good news.





Here is a video I did for Quicken




July 2010 update

We had so much fun refinancing with Quicken in February...we did it again in July, dropped our rate to 4.875%...we are saving another $67 a month...no money up front no increase in principal...just saving money.

Folks I do not know about you...I can find uses for the $200 a month I am saving using Quicken...how about you?

What we did...so you don't have to

I filled out an online application. I gave my phone number, something I am loathe to do. The phone rang 15 minutes after I applied and I was bombarded by about six companies.

These guys (and gals) are what make used car salespersons look good in comparison. Fast talking, best rates, save you a fortune, no brainer easy process. Wrong...I became somewaht disillusioned with my fellow man after this process.

What happened

Due to the number of phone calls I cut the competition down to 2 companies...one being the one I used and recommend...the other guy... To say he was unethical is putting it mildly...and you need to be careful. They can make a calculator do backflips and will easily confuse you.

Looking back...here is what I would do different

I would ask all lenders the following...this is to try and get an apples to apples comparison of the offers:

• Ask for a zero closing cost deal
• Ask if a appraisal is necessary
• Ask to be prequalified
• Ask how long the process will take
• Ask for the proposed rate to be frozen for 30 days

Why are these questions necessary?

The primary reason is to keep you from being taken. Once you authorize an appraisal or send a deposit you are stuck with that company. I was lucky not to have been a victim of bait and switch...be careful.
• Zero closing costs...otherwise you are comparing apples and oranges...I could have gotten a 4.875% rate...it would have cost me $5,000 in closing costs
• An appraisal can cost around $500...some will waive that...that is good for you
• If you do not get prequalified, they can take your money ,say sorry your credit isn't good enough, and change their deal...not good for you.
• The sooner they can close the better for you
• If they won't lock the rate you are exposed to a much worse deal than you want

What almost happened to us

The fellow we did not use sent me a written proposal for a 4.875% loan with no closing costs. The other companies best offer with no closing costs was 5.375%.

I was just so close to sending a check for an appraisal, this guy required one, the company I used did not. I called the unethical salesperson and asked him to go over his deal one more time.

OH, SORRY...he made a horrible mistake and could not do the deal he had proposed in writing. It is called bait and switch...it is unethical, sleazy.

What we did

We signed up with the company (Quicken) who refused to match the phony offer. We closed in 2 weeks, no apprasial, no closing costs, a notary came to our house to sign the papers...took 15 mintutes.

The entire process was professional and painless. We are now enjoying saving $140 a month...perhaps you can too or do better.

What you should do

Here is the best home refinance tip. Skip the agony...ask for a refinance quote asking the very questions listed above from the company we ended up using. You will recognize the name...they are professional...large enough to make sure you are getting a good deal. I recommend them highly...can use some extra money every month?






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