Online Refinancing
The mortgage market has changed dramatically in the last 10 years. Homeowners are no longer going to their local bank to get a home loan. The internet has become the primary means for homeowners to obtain a refinance. There are many options out there ranging from large scale operations that are connecting borrowers with lenders, small scale websites tailored to the local market that are run by local brokers and direct lenders which are playing an increasingly large role in the online mortgage marketplace.
The large scale operations are the companies that we have all heard of. They sponsor ball parks, the commercials are on every 5 minutes and you can’t visit a website without seeing their ads. Most of these “gorillas” sell your information to a lender or a broker. This has become the biggest problem for consumers. After entering your information on those websites you can expect calls from at least 4 companies, often times more, which will call you over and over until you tell them to go away. Even after you tell them to go away you can expect some calls from them “to check up” fairly often. This is a great concept because you can talk with several lenders and compare rates and fees, but it will require patience and time to handle your online refinancing with one of these sites.
The small local websites are another option for borrowers. These sites are generally done with a template that anyone can use to create a website. This is a great way for borrowers to find out if they can qualify for a loan and great for borrowers that are not internet savvy. You can go down to a physical office, look someone in the eyes, and there is generally a higher comfort level with the local lending approach. These local professionals will generally have a higher rate and fees than a large wholesale or direct lender would offer with online refinancing. These individuals run small offices, work with few banks, and have a lot of overhead to cover when compared to the number of clients that they receive. This can be a great way to go if you want to avoid the hassle of dealing with several companies.
Websites have recently emerged from direct lenders in which case you will only be contacted by the lender directly. These sites are very well done and very informative. You can often see an estimate of current rates (current rates are always an estimate, rates are different for every situation) and they will generally have their fees clearly posted on their website. You will pay for the convenience factor with most of these websites. It costs a lot of money for these companies to build comprehensive systems and websites. That involves a lot of overhead which means that you may pay for that convenience with the interest rate and fees. Keep in mind that they also pay a lot of money to get you to their website. How did you find the last mortgage website that you went to? I bet that company paid money in some way, shape or form to get you to their site.
There is a fourth type of site out there. These sites are new to the market and increasing in popularity. The new type of sites are basically a broker of information, they leverage your information and request for online refinancing in order to obtain the best deal for you. These hybrid sites take your information and find one lender that will be able to best meet your needs. They then deliver this information to that lender with the agreement that the lender will not charge you points or fees on your mortgage. You aren’t hassled by a bunch of lenders, you aren’t charged fees to refinance and you know that you are being contacted by one of the best possible lenders for your situation. It is easy to see why this is growing in popularity.
Mr. Adam Ferguson
Mr. Ferguson has developed an expertise in the financial services sector through education and experience. He completed his degrees in Finance and Business Law at California State University, Long Beach. Mr. Ferguson has spent time in the sales divisions of Fortune 500 mortgage banking and insurance firms. His broad knowledge and concise understanding of consumers is critical to making FreeHomeRefi.com the premier provider for consumer mortgages.