Refinancing can be very intimidating. Choosing the right lender, broker, interest rate and program can make the refinance more stressful than the actual purchase of the home. There are many things you should consider when refinancing, and here are 5 quick tips to ensure a successful transaction.

1) There is still a cost to you in a "No-Closing Cost" Loan! A common misconception is that this loan is free. Lenders lead you to believe that there are no fees and there is no catch to the loan. The reason there are no closing costs in the loan is because the lender or broker make their profit by charging a higher rate. You can get a loan without closing costs, but the interest rate will be much higher than what you would pay by financing the closing costs. Another fact often not explained is that pre-paid items are not included in the "No-Closing Cost" loan. Pre-paid items are the costs of setting up an escrow account. Borrowers are often charged taxes, insurance, and interest due. Be sure to ask if title fees are included as well. Simply compare the two programs to find out if the "no-closing cost" option works best for you.

2) Advertising for Mortgages is not cheap! Just because you have seen a television commercial or heard about a company on the radio does not make them reputable. It simply means that the company spends a lot of money on advertising. This cost is usually passed on to the borrower. Look for a broker or lender with lower closing costs. It makes sense for you to compare offers, but don't give any extra weight to the company with the large advertising budget. You are paying for those fancy television commercials!

3) A good mortgage broker can help increase your credit scores fast! A reputable mortgage broker has access to tools than can quickly and legally improve errors on your credit report. Over 90% of credit reports contain errors, so there is a good chance a trade line on your report is lowering your score. Ask your broker or lender if they have access to "rapid rescore". This can help you qualify for the lowest rate.

4) Your credit score is not going to drop with every credit pull! This is a trick many lenders will use to prevent you from shopping around. By telling you not to shop around, you will have no idea if you are getting the best program. All inquiries that you have within a 14 day period when shopping for a mortgage count as one inquiry on your report.

5) Rate is not the only aspect of a loan! Many borrowers are so concerned with interest rate, they fail to ask about other features of the loan. If you are quoted a 5 percent interest rate, but later find the loan will cost 3 points, is an adjustable rate, and has a pre-payment penalty, does that interest rate mean much? An honest and reputable mortgage broker will explain all aspects of a refinance, and help customize a program to meet all of your needs.

Call me today at 240-463-3224 or visit www.tmmortgagegroup.com to find out more about the refinance secrets mortgage professionals don't want you to know.