How to Compare Refinance Home Mortage Rates

Refinancing your home into a lower interest rate can reduce your monthly payment and save thousand of dollars in interest. With so many home loan products available, it's not easy to spot the best rate. When comparing home mortgage rates, it's important to look for hidden costs, such as points or high closing costs. Once you have a few tools in place, comparing rates to refinance your home is quick and easy.

Things You'll Need

• Excel or other spreadsheet program

Instructions

1. Check out national rates at Bank Rate, a company that publishes home mortgage rates for the 100 top financial institutions in the nation.

2. Consult the financial institutions you're considering. Ask if the published rate includes buying down points. This is important because buying down the interest rate can add hundreds and even thousands of dollars to your closing costs.

3. Compare closing costs. Your current financial institution may offer a refinancing program with low or no closing costs.

4. Do a quick comparison of mortgage rates. Create a quick Excel spreadsheet and enter the interest rate and fees for each loan.

5. Once you have identified the best mortgage rate for refinancing your home, contact your current lender. Financial institutions are eager to retain current relationships because it's expensive to acquire new business. Ask them to match the rate you found.

Tips & Warnings

• Even after you refinance, continue to watch rates. If you spot a rate one percentage point or more lower then your current rate, it may be worth refinancing again or requesting that your current lender match the rate.

• Although your loan officer should disclose all fees associated with the account, read all documents before signing. Evaluate the Truth in Lending document, which should disclosure how much the loan costs over the entire term.

Resources

• Compare National Rates