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Mortgage Refinancing Help
: Regional: North America: United States: Illinois: Business and Economy
: Financial Services (10)
 Use a mortgage broker. A mortgage broker will show you mortgage products from different banks and mortgage providers. Pick a mortgage broker carefully. If the broker works directly for a company that offers financial products, make sure he shows you clearly why one of these products is better. Mortgage brokers also get a commission on their sales. Find out what the broker's services include and if he charges any fees. Many brokers do not charge fees beyond their commission. Also check the broker's credentials.
 See also:
 IDFI - Illinois Department of Financial Institutions »
Illinois Department of Financial Institutions
- State agency that regulates, licenses, examines, and investigates currency exchanges, credit unions, consumer finance companies, title finance companies, and money transmitters. Includes rules, lending tips, regulated institutions, and jobs.
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 IAIFA - Illinois Association of Insurance and Financial Advisors »
Illinois Association of Insurance and Financial Advisors
- A federation of local associations for sales professionals in the fields of insurance and financial services. Includes listing of chapters, programs and services overview, consumer information, industry links, and contacts. Headquarters in Springfield.
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 Don't fall for the 0% apr unless it fits in with your master plan. A lot of brokers will try to get you locked into a low interest rate that will balloon on you in a couple of years and leave you out on the street.
If you are making payments on a long term loan, say, 30 year mortgage for the past 10 to 20 years, then refinancing to another 30 year loan will not be a good option as it may increase your overall payment.
It's better to follow the 2% Rule which suggests that you can enjoy the benefits of a home refinance if your mortgage refinance rate is 2% lower than that on your current loan. The interest savings will help you recoup the costs you've paid for the new loan provided you stay in the property for a certain period of time (break-even period). However, there are no-cost as well as low-cost refinance loans wherein the costs are included into the loan. But you can expect comparatively higher rates on such loans. Moreover, these loans are limited when the market is in a credit crunch.
Know your credit score before you begin looking for a loan. If you can, try to remove any blemishes from your credit report before applying for a refinance.
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