If you are shopping for refinance mortgage rates on the Internet, you are probably bombarded with "low rate" offers before the lender even knows your situation. In today's mortgage lending environment, a lender needs to know a little about you to help not only get the lowest and best rate available TO YOU SPECIFICALLY, but also the best program to meet your goals.
Refinance mortgage rates vary a great deal based on, but not limited to, the following factors:
- The credit score of each borrower on the loan
- The loan amount - smaller or larger loan amounts may be priced different than an average loan amount
- length of rate lock - the longer the time period the lender guarantees the rate, the more cost there is for the lender and that cost get passed on to the borrower
- type of program - generally the shorter the term, the lower the rate. (A 15 year loan has a lower rate than a 30 year loan.)
It is important to strongly consider service factors, in addition to the interest rate, when choosing a lender as it costs you money and aggravation if you do not close on the scheduled date.
Great questions to ask are:
Does the lender control the transaction or do they depend on others for loan approval or funding?
What is the expected time-frame for loan approval and closing?
How long is my interest rate locked in for and what happens if the lender is not able to close my loan in that time frame?
We encourage you to contact one of our experienced licensed loan officers and they can provide you an accurate rate quote and advise in a few short minutes - it's free.