If you are thinking about refinancing your home loan you might want to consider using a broker to help you find the best mortgage offer. Working with a broker will help you compare offers from dozens of mortgage lenders; however, you should be careful when entering an agreement with a mortgage broker. Here are several tips to help you avoid overpaying when using a mortgage broker to refinance your home loan.

The Internet As a Mortgage Tool

The Internet is an excellent way to locate and compare mortgage brokers. A mortgage broker is an individual paid a commission for referring your business to a mortgage lender. Mortgage broker’s fees vary, it pays to shop around and read the fine print before entering an agreement with a mortgage broker. The advantage of using a mortgage broker is that they have extensive contacts with mortgage lenders and can find you mortgage offers you might not find on your own.

Use Multiple Mortgage Brokers

There is nothing preventing you from working with more than one broker. Comparison shopping works best with the maximum number of brokers and lenders. Don’t be afraid to negotiate with mortgage brokers and lenders for better terms and interest rates.

Compare All Aspects of the Loans

When you comparison shop it is important to compare all parts of the loan offers, not just the interest rate or Annual Percentage Rate. Homeowners that focus solely on interest rates overpay thousands of dollars for other fees. There is a simple way to do a line by line comparison using documentation the lender is required to provide you after receiving your application. You can even get this documentation prior to applying, allowing you to make an informed decision as to which loan is best. To learn more about comparing loan offers and shopping for the best home loan, register for a free mortgage guidebook.