How to Find the Lowest Home Refinance Rates

Finding the lowest home refinance rate can save homeowners money.

Refinancing your home often results in lower interest rates on your house mortgage. Finding the lowest home refinance rates takes time and effort, but effectively researching different lenders can save homeowners large amounts of money. In order to find the lowest home refinance rate, homeowners need to ask several questions and take some necessary steps.

Instructions

1. Call and ask your lender for their most current home refinance rates. Obtain a copy of their Good Faith Estimate and Truth in Lending statement. This statement is a legally binding document providing accurate information on the lender's current interest rates.

2. Call at least three other lenders in your area and ask for their current home refinance rates and their Good Faith Estimate and Truth in Lending statements. Lenders may vary greatly in their home interest rates, so researching different lenders may help you find the lowest interest rate for your home refinance.

3. Compare the Annual Percentage Rates (APR) from each Lender. The APR figure listed on the Good Faith Estimate and Truth in Lending statement is the total cost of your mortgage for a single year. The Lender with the lowest APR has the best home refinance rates.

4. Call your current lender and ask to negotiate on their APR for your mortgage. Inform them of the lowest rate in your area and ask them to match it. Lenders will often match a lower APR figure in order to keep your business.

5. Call other lenders to inform them of your decision. If you current lender has the best APR figure, stay with it. If another lender has the best APR rates, switch your mortgage to their business.

Tips & Warnings

• In order to give you an accurate APR quote, lenders will pull your credit score. Double-check your credit score online at AnnualCreditReport.com, to make sure your score has not lowered. If it has, do not attempt to refinance your mortgage.

• Do not attempt to get an APR quote on the Internet. Most lenders need your Social Security number and other identifying information to give you an accurate quote. Operating with lenders over the phone is safer than online.

• APR rates can change daily, so check with your lender daily until your refinance is final.

References

• Federal Reserve: Looking for the best mortgage
• Federal Reserve: A Consumer's guide to refinancing
• Federal Trade Commision: Facts for consumers

Resources

• Annual Credit Report: Home