Everyone believes that getting a new mortgage or refinancing their current mortgage, which is a simple and smart thing to do with rates at an all time low. However, what many people forget to factor in is the closing costs that sometimes sky rocket the amount that you actually pay. However, there are ways that you can lower your closing costs that require just a bit effort on your part.
For starters, if you have worked with a lender in the past and have had good luck with them, use them again for refinancing or finding a new mortgage. Why should you do this? Simply because you know the person and already have a relationship with the lender which means that they already have you on file, so you can avoid some costs because of this. In addition, a lender is more willing to give you a break if you have been a customer with them for a number of years.
Secondly, the fees that are tacked on by a lender are numerous and can amount to thousands of dollars for a $200,000 mortgage. If you have good credit you can challenge some of those fees to a certain extent especially if they seem too high. Lenders are required to give you an estimate of the fees that you will be accessed three days after you have applied for the loan. These are just rough figures, however, you should compare these to what you actually get. If you notice a huge difference, and you have good credit then you know that the amount is being increase so that they make more money. It is these types of situations that you can argue yourself a lower rate. If you do not get this lower rate, then you may want to consider going somewhere else for your Hawaii mortgage needs.
Lastly, keep in mind the goal of getting the new mortgage or refinancing. This means that if you find you will be paying a higher closing cost fee, but receiving a lower rate then it is a better deal than paying lower closing costs, but a higher fee. Do not let yourself be consumed with finding a low closing cost, the interest rate that you pay is what you want to find at the lowest possible rate.
It is important that you have realistic goals when you go into the process of receiving a new mortgage or refinancing a current mortgage. You can help yourself by negotiating terms, however, do not waste your time if the deal is at the best that it will get.