Homeowners turn to mortgage refinancing for many reasons, but most of these reasons revolved around one thing -- saving money. So it's only natural that these same homeowners would also be curious about online mortgage refinancing loans, since the word "online" often suggests convenience and money savings.
But what's the real story about online mortgage refinancing loans? Are they a legitimate way to save money on your mortgage refinance, or are they more often scams? And how much of the refinancing process can be done online? These are some of the questions we will answer in this article.
Online Mortgage Refinancing - Trust is Everything
The Internet has changed everything about the mortgage process. You can shop for mortgage rates online, research lenders, and yes ... even apply for a mortgage refinance online. But as with any other form of Internet shopping, you need to use some caution. There are plenty of legitimate companies who give mortgage quotes online, and even conduct some of the mortgage application process online. But there also some "sharks" out there.
The best way to protect yourself when seeking an online refinance loan is to stick with well-known companies. For example, companies like E-Loan and Quicken Loans offer online mortgage refinance products, and these companies have strong reputations and long histories.
Whether you choose to work with one of the aforementioned companies or some other company offering online refinance, look at the bottom of their website and see if they have icons stating that they've been "reviewed by Trust-e" or something similar. This means the company's website has been reviewed for security purposes and found to be a safe, secure place to conduct business.
Saving Money by Refinancing Online
That addresses the question of legitimacy. Now let's tackle another common question related to refinancing a mortgage loan online. Can you save money with this approach? As you might have guessed, the answer here is a big "sometimes."
If you shop wisely and ask the right questions of a lender, you can certainly save money by refinancing online. Companies that specialize in this process often have a lower overhead than traditional "bricks and mortar" lenders. They also have a more efficient workflow in most cases, using the Internet to streamline applications, credit reviews, etc.
So yes, you can save money on closing costs and other fees by refinancing your mortgage loan online. But as with anything else in life, you can also end up paying more if you make mistakes and choose the wrong kind of lender. So remember to ask about all fees in advance, stick with trusted companies, compare quotes from multiple lenders, and always get professional financial help if you're not sure about something!
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