- 1). Call your previous mortgage broker. A mortgage refinance creates a new home loan, and the new loan pays off the old mortgage. If you used a mortgage broker in the past, and you had a good experience, contact the broker and complete an application. Based on your information, brokers contact different lenders, recommend loan programs and obtain multiple loan quotes.
- 2). Ask for recommendations. If you didn't use a broker, ask family and friends for recommendations. Some mortgage brokers are dishonest and offer bad advice. Thus, it's wise to select a broker with a good reputation. Contact the Better Business Bureau and research possible complaints. Moreover, familiarize yourself with different refinance options. This way, you can quickly identify scams and bad loan terms.
- 3). Contact the National Association of Mortgage Brokers. Visit NAMB.org and search commercial and residential refinance mortgage brokers in your area.
- 4). Ask the mortgage broker about compensation. Refinance brokers are not lenders. Rather, they have a working relationship with various home loan lenders. They function as the middleman between borrowers and lenders. In turn, refinance brokers receive a commission. Some brokers charge a flat-fee for their services, whereas others charge a percentage of the loan amount.
- 5). Inquire about different mortgage refinance options. A good refinance broker is familiar with various types of mortgage loans, and they should be able to offer helpful recommendations. If the broker has little insight, or is unable to answer key questions, take your business elsewhere.
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