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We are going to discuss 3 major lending mistakes that borrowers routinely make when applying for a St. Louis mortgage refinancing.

1. Interest Rates and How It Affects You

Since interest rates are at their lowest in over a decade, you probably have discussed the possibility of approaching a lender or mortgage broker about a new refinance loan. This may put you in a better financial position from a monthly payment point of view as well as enjoying the obvious savings over the life of the loan.

Although this is good news, you still have to tread carefully. Always make sure you read the fine print or listen carefully to the end of a commercial to understand any contingencies regarding the new lower rate and fees involved. Realistically, most consumers have to pay points when closing. Never expect a free loan from a mortgage expert.

Keep in mind however, points or fees are not always a bad thing especially when you receive a lower interest rate in return. The cash savings can be very attractive when your monthly mortgage payment has been lowered. And don’t forget the long term savings that are involved over the life-time of this new loan.

2. Read the Good Faith Estimate In Its Entirety

The next mistake to avoid is not taking the time to go over the Good Faith Estimate the lender or mortgage broker provides. Read it and read it thoroughly so there are no questions in regards to the proposed A.P.R., the interest rate and all fees involved.

One thing I inform all potential refinancing clients is that the Good Faith Estimate is exactly what it is called, an “estimate.” Figures may be a little different due to an unexpected lower credit score, appraisal or maybe your debt-to-income ratio is a lot higher once the lender sees all your debts from your credit report.

Whatever the reason for these changes on the Good Faith Estimate (GFE), keep in mind that your loan officer had no control over these stipulations. You may have to live with them for now. WARNING: If you notice that the GFE numbers have changed dramatically than originally stated, that may be a red flag and something you need to discuss with your lender.

Above all else, never, ever accept a new loan if it puts you in a worse financial condition than you are currently in. A new mortgage should help you attain your goals and put you in a better situation.

3. I’m Waiting for the Right Time to Refinance

When interest rates are low, some consumers feel unsure when to apply for a new mortgage refinancing. On the other hand, there are some people that wait and wait and wait for that perfect moment.

There are times in life when you just need to take decisive action if it makes financial sense. When interest rates are lower than your current one may be the deciding factor towards moving forward with your St. Louis refinancing.

So, use these 3 tips and avoid these frustrating lending mistakes. And, if rates are historically 1 to 2 points lower than your current rate, all the better. That may be the right sign to move forward with a St. Louis refinancing home mortgage.

Looking to find the best deal on a St. Louis refinance loan, then visit www.StLouisRefinancingGroup.com to find the best advice in the St. Louis lending refinancing community for you and your family.

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