The recent housing bust has left interest rates at record lows, and many lenders with little income on their books as home sales plummet. Combined, these two factors mean it’s a great time for homeowners to refinance.
The difficulty lies in determining which of the literally thousands of available lenders offer the best deal for your needs. Taking your search to the Internet offers a wealth of advantages to individuals seeking to refinance.
Of all the advantages of online refinancing, the ability to compare lenders side-by-side is incomparable. Gone are the days of calling around to determine what loans are being offered by various lenders: today, there are a whole host of websites that offer comparisons of rates, incentives, and other terms that can make your selection of a lender much simpler. Most of these sites also allow you to compare lenders based on a specific feature that’s most important to you, offering a table format that lets you compare apples to apples (or in this case, APRs to APRs).
The quick application and approval process offered by online refinancing is another key benefit to consumers. While traditional refinancing options require paper applications that can be time-intensive to complete, most online lenders have streamlined the application process, meaning it takes far less time to submit your application. Online availability of credit scores also makes it faster for the lender to render a decision, meaning less sleepless nights for you.
A wealth of online lenders also means your rates are going to be far more competitive with online refinancing than those at brick-and-mortar banking institutions. In fact, many online lenders have staff who are dedicated to surfing the web, comparing rates and other terms so that they remain competitive.
And finally, as a web-savvy consumer, you also have the advantage of review sites where actual loan applicants discuss their experiences with online refinancing lenders, offering you a first-hand look at the actual loan process. Rates and other loan terms are just part of the total online refinancing process. By visiting these review sites, you can determine if the customer service offered by lenders meets customer expectations, or if a lender falls short.
When compared with traditional refinancing options, online refinancing makes financial sense, and can end up saving you considerable cash over the life of your loan. If you’re considering refinancing, it’s well worth your time to do a little web sleuthing to find the online refinancing lender that’s right for you.