You might need a little extra money for a home renovation or college tuition, or you might just want to save some cash. No matter why you want to refinance, it can be a good idea as long as you get a low rate. Here are some easy things you can do to make sure you get the best rate on your Home Refinance Loan:
Pay off your debts.
Your credit score is one of the things that lenders use to figure out your interest rate. In general, your rate will be lower the better your score is. Check your credit report to see if there are any mistakes before you try to refinance your mortgage. If you find an error that hurts your credit score, like a payment that was marked as "late" even though you sent it on time or a line of credit that doesn't belong to you, make sure to fix it.
Browse around.
You might not always get the best deal from the same finance company that holds your mortgage loan. Check out what other lenders have to offer. You can do this by sending your loan application to more than one lender or by hiring a mortgage broker who will check with more than one lender on your behalf. Try different kinds of companies, like banks, credit unions, online mortgage lenders, and mortgage brokers in your area, to get the most offers.
Negotiate
Take the time to negotiate with lenders once you have a few offers. Tell them you're looking for a great deal and that you have other options. Mention their competitors so they know you're serious about getting a loan, and be ready to leave if they won't give you the best rate. Once you find a deal you like, however, you should ask the lender to "lock it in." Interest rates change every day, but if you lock in a low rate, you'll still get it even if rates go up the next week.
Keep in mind that the interest rate is only one cost of refinancing. In many situations, you'll have to pay fees, points, and other extra charges. You can get your loan for less money if you ask for these fees to be waived or lowered.
