Sooner or later, every relationship, personal or professional, will hit a rocky patch. While in some cases you can work through the issues, in others, you’re better off cutting ties and moving on. That may be the case if you find yourself dissatisfied with your current Atlanta-area mortgage lender. If your lender doesn’t return your calls, puts you on hold for minutes on end or is charging you an astronomical interest rate, you can probably do better with another company, whether you’re still in the home buying process or have already purchased.
Before you close
Sometimes, a lender might start sending you signals that the relationship isn’t working out before you even close on the home. You might see that a different lender is offering rates that are much lower, or your current lender might start ignoring your calls. You have the right to start working with a new lender. Timing may be an issue, however, as the new lender will need to approve you for a mortgage before the closing date. Otherwise, you’ll need to ask the seller for an extension.
Refinancing after closing
If you already own the house, the only way to get a new mortgage lender is to refinance the loan. Refinancing offers a number of benefits, aside from getting you out of a sticky lender relationship. It lets you take advantage of lower interest rates, for one thing. If you had an adjustable rate mortgage, you can switch to a fixed rate, or vice versa.
Refinancing can also allow you to shorten or lengthen the term of your mortgage. One option if you’re refinancing in the Atlanta area is the Super Saver 25 mortgage. You’ll cut the length of time you have a mortgage, but won’t increase your monthly payment too much. In the end, you will pay less interest than if you had stuck with a 30-year term.
Should you refinance?
While refinancing does have its benefits, it also has some drawbacks and may not be the best solution for every homeowner. For example, if your lender has included a prepayment penalty on your loan, you’ll want to include the amount of the penalty in any calculations you do to see if switching lenders through a refinance is worth it. If your interest rate drops significantly, and you really like your new lender, you might justify paying the penalty.
Another thing to think about is how much longer you plan on staying in the home. If your goal is to move in the next few years, you may not break even on the refinance. But the peace of mind of having a new mortgage lender whom you can rely on might make you less concerned about the cost.
When you chose your current lender, odds are you did so because it offered the best deal possible. If that’s no longer the case, you’re better off finding a new mortgage company who can give you exactly what you want and need.
Image source: Flickr
[cf]skyword_tracking_tag[/cf]
