How To Get Your Home Refinance Online

Many consumers today opt to handle nearly all their financial transactions online, from paying bills to transferring funds to making investments. One of the most significant financial decisions for many homeowners is a home refinance. The Internet can be a valuable resource for refinancing information, and many homeowners opt to apply for their home refinance online.

Choose a responsible mortgage lender for a home refinance

If you choose to refinance online, you will have access to multiple mortgage lenders. Once you have identified a lender, check them out on the Better Business Bureau's website and do a Google search for customer reviews of that lender to check for complaints or compliments.

One of the biggest advantages of refinancing online is access to hundreds of mortgage lenders rather than the handful you might be able to reach by phone or in person. As with any other online transaction, though, it pays to be cautious about which company you choose. Taking a few precautionary steps before handing over your valuable personal information can make an online refinance safer.

Avoid identity theft when refinancing online

Many people are concerned about transmitting personal data over the Web because of a valid concern about identity theft. There are several ways to protect yourself online when refinancing. One way is to make sure you initiate the decision to enter personal and financial information rather than responding to an email or a pop-up ad, which could be a scam.

Make sure the lender you choose has a secure website. There are two ways to verify that you are on a secure site when you are refinancing. First, check for a yellow closed padlock symbol somewhere on your browser's address bar or status bar. This indicates the site is secure. Second, check to see if the "http" in the address turns into "https". The "s" stands for "secure". A secure website is one in which security measures have been implemented to prevent hackers from stealing your information. These symbols may not appear until you are accessing a sensitive area of a website.

Advantages of online refinancing

Online lenders can often handle your home refinance faster than traditional mortgage lenders since the required information can be handled by email and telephone. Depending on the requirements of the lender, an in-person appraisal may or may not have to be arranged. Other than the closing, which must be done in person, many aspects of a home refinance can be handled online, saving you time.

A major advantage of the Internet is competition between mortgage lenders, which often results in lower interest rates, lower fees or both. Many refinancing sites will give you quotes from several different mortgage lenders. If one lender offers a lower rate, but another lender seems to have better customer service, ask the second lender if it will match the lower rate.

Be sure to compare fees and points for each home loan quote to make sure you are comparing apples to apples. In many cases, a significantly lower interest rate will require you to pay higher fees, or points, up front.

Use common sense

Getting a mortgage refinance quote online is simple and fast, but use your common sense if you find a quote at a much lower rate or cost than most of the ones you have received. If it sounds too good to be true, it usually is. Be sure you are dealing with a reputable company so that your deal will be finalized on time and as promised. Get it in writing and read the fine print.

Online mortgage refinancing can be a great choice for many people. Taking the time to check for a secure site and a reputable company will help ensure that your online mortgage refinancing experience is simple, safe and rewarding.