There is no better time to think of refinancing and mortgage than today. Because of recession and sub-prime mortgage crisis, lending companies are having some difficulty disposing the property they have foreclosed. Recession has also led them to compete with the government as the government has unveiled refinancing offers on a better rate.

Since they do not want to lose customers, they have lowered their interest rate as well. This has affected not only a few lenders but nationwide. Although there are a few extra requirements that might discourage some property owners for refinancing, a good credit score and decent property value (for refinancing and 2nd mortgage) could get you approved.

Shopping Online

If you are ready to apply for mortgage or refinancing, the best way to get the best rates is to shop locally and online. Locally, you will be able to deal with a few lenders who are more than willing to do business with you. On the other hand, there are hundreds of websites that could offer competitive rates as well. Although you cannot personally see them, their business would be as good or even better compared to your local lender. Because of increased competition, they have to offer attractive interest rates.

But their posted interest rates are just teasers. You will never be sure that you can get the posted interest rate. Their lowest interest rate would usually be offered for those who have impressive credit rating and payment history.

What you need to look for are the online mortgage calculators offered in these websites. These online mortgage calculators will help you reach an estimate on how much you could avail. This will also help you compare the rates offered by two or more websites. Instead of manually calculating how much you will pay, you can get a good estimate on what you can get instantly.

Look Out for the Asterisk

If you are offered with an interesting monthly payment, do not just jump into the opportunity. Always look out for the asterisk (*) sign posted in their website. Usually, this asterisk would mean additional fees especially on what you have to pay if you missed a single payment. These could easily debilitate your finances if you do not read the fine print.

Of course, you also have to remember additional fees that will come with the asterisk. The sign-up fee, early termination (from your previous lender) and other small fees should be considered as well.

The 2nd Mortgage

The most impressive feature of online mortgage is its ability to provide a good estimate if you are thinking of taking out a 2nd mortgage or home equity loan. Calculating for a 2nd mortgage is very difficult not to mention confusing. Thankfully, the online mortgage calculator will automatically provide you with the data you need. You just have to provide the numbers such as current mortgage balance, interest rate, cash-outs and the value of your property. By providing these numbers, you will be able to have a good idea on your 2nd mortgage.

Avoid Too Much Information

Be careful on which websites you want to deal with. Although there are websites that offer legitimate assistance for those who wanted to have a 2nd mortgage or any type of property related transaction, there are websites that only pose as legitimate websites but are only there to gather information illegally.

As a protection, use websites that ask for numbers only. Additional information such as specific location (they might ask for the city and state), phone number and name should never be given out. By providing only the numbers, you can still have a good estimate especially from a legitimate company. If they ask for more information, just back away.