Mortgage rates are at a record low!

I am sure you have seen banks and mortgage companies reduce their rate to an all-time low!  When it comes to refinancing, here are a few tips to help along the way!

Make sure your insurance agent knows you are refinancing

The majority of loans require or have set up escrow accounts to help ensure that taxes and insurance are paid for their loans.  Many times clients will show proof of insurance during a refinance, but will not notify their insurance company or agent of the change.  We will then bill the old mortgage company, and the bill will go delinquent.

This often leads to a nasty letter from your mortgage company saying you don’t have insurance and they will then force place insurance until you show proof.  While this isn’t always an issue, it is certainly a headache that can be avoided if all parties are part of the refinance.

Also, the majority of our business comes from referrals, typically mortgage lenders.  So if you are in need of a recommendation, we have worked with hundreds of mortgage lenders and we can help point you in a good direction!

Get multiple quotes or work with a broker

As an independent insurance agent, this advice shouldn’t come as a shocker.  Choice brings competition and competition brings out the best in people and companies.  Every bank/mortgage lender is going to have different underwriting rules and rates for certain clients.  Having a broker, and a banker provide you quotes will eventually lead to the best rate.

Also, it is also a great time to have an insurance broker work their magic

Unlike the initial purchase of a home, refinancing has a different pace.  There is no buy/seller’s there are no realtors and no big contracts.  With all the pressure of closing, many of our clients simply didn’t shop insurance rates.  They found a good enough rate and closed.

The problem with this is that insurance rates eventually increase.  We just saved another client $2000/year on their insurance rate because they didn’t shop when they bought their home 5 years go.

If you have not had a broker shop your homeowner’s rate around in 5 years and you are refinancing, now is a great time to do so.