Refinance Mortgage Rates - Current mortgage rates are an important consideration when determining whether a refinance is a sound financial move.
Below are three easy ways to determine current mortgage refinance rates:
Contact lending institutions directly.
Call and/or visit the websites of potential lending institutions. If you're not sure which type of loan best suits your needs, collect information regarding all available refinance options.
Work with a mortgage broker.
A mortgage broker acts as an intermediary between the lender and borrower. Typically, the broker maintains a database of hundreds of loan products available from a listing of approved lenders. Mortgage brokers work with major banks, small independent banks, credit unions, and other types of lending institutions, and may have access to exclusive refinance rates not available elsewhere. Working with a mortgage broker is faster and easier than contacting individual lending institutions, and can result in substantial savings.
Get quotes online.
Online quotation websites, such as Bankrate and Lending Tree, will provide interest rates for several of their approved lenders. Typically, an online quote requires completion of a simple form containing the following information:
Loan type you're seeking (i.e. 15-year fixed rate or 5/1 ARM)
Current property value
Current mortgage balance
Home type (i.e. single family, townhouse, or condo)
Description of your credit history
Additional points to consider regarding refinance rates:
When comparing loans, make sure you're making an apples-to-apples comparison
While the interest rate is important, it's just one factor to consider; be sure to ask about fees as well
Your qualifying interest rate is greatly dependent on your credit rating. You will need a credit score above 740 to obtain the lowest rates.
Rates that are uncharacteristically low may require the purchase of points.
It's a great idea to contact your current lender first; make sure they know you're a current customer, as you may qualify for special considerations.
When comparing refinance mortgage rates, it pays to shop around. After learning the interest rates and fees of prospective lending institutions, enter the information into an online refinancing calculator to determine which lender offers the most attractive option. As with any financial decision, researching before acting can potentially save hundreds - if not thousands - of dollars.