Mortgage and Refinance Rates Differ
With experience you may be aware by now about the mortgage rates that have been publicized never equals the quotes from lenders. These notifications may be applicable to a handful populace or for limited period of time. For a routine rate the quote depends on the amount of loan, value of property, type of property, its use and credit rating. You should be aware of the rate of refinance mortgage being different from the rate of the purchase loan.
Demand for Refinance
There are a number of causes for the mortgage lenders to work close with full force. Government has pushed more people into refinancing with programs such as HARP. This comes with a time limit. Along with this, modified laws have made time to be consumed at rapid rate. This involves mortgage funding, procedures and underwritings. Lastly the economy has made the rates meet new downs. Thus there is growing refinancing requirement.
Mortgage lenders have a tendency to speed up their operation. While working real fast many put forth fresh applications in the frontline, ahead on the refinance applications. Unlike refinances purchases comes with a time limit. Lenders do not wish new clients to collapse for delay in closing. Agents of real estate's can influence a client to choose lenders and nobody wants a drop in sale.
Time and Money
The lender's least wants such situation like a refinancing customer's fastened rate expiring after 30 days. So they have in offer a free rate lock for a mortgage for 90 days. Although the lenders costing increases for the stretched lock-time, so some make the costs high while others shoot up the mortgage rates in case of refinancing over buying.
When contending lenders provide you with refinance quotes see to it that they are giving more or less the same to get you. Any lender giving a great mortgage rate might not be suitable if it is a 30day quote and they require 90 days for closing your refinance.