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Which Mortgage Refinancing Companies Have The Best Rates?
By EchoBay Loans Staff Writer

When you're looking into refinancing your home, it's important to remember that not all lenders are created equal. Just like different stores feature a variety of prices, mortgage refinancing companies feature a variety of interest rates. Unless you want to throw away thousands of dollars over the life of your loan, you'll want to make sure that you know where to go for the best rates so you can save the most money.

The face of lending has changed drastically over the past years, providing homeowners wishing to refinance their homes with many more options than were previously available to them. In the past, you were left to the mercy of your local bank for the best available interest rates. That, however, has completely changed. Now consumers have a variety of mortgage refinancing companies to choose from.
You can compare the rates of local mortgage brokers, banks, credit unions, and online lenders to shop around for the best available rate.

Each of these lenders is different and each is associated with their own pros and cons. Your local bank may offer more personalized service, but their interest rates will tend to be a bit higher. The local credit union probably offers lower rates than the local bank since it is technically a nonprofit financial institution working for its members, but you might not meet the qualifications required for membership. Mortgage brokers have the flexibility of working within their lending network to find you the lowest possible rates.

They also, however, tend to have higher origination fees and they are limited to the network of lending institutions that they work with. Online lenders may not offer you the level of interactive customer service that you're used to, but you do get access to nationwide lenders and you can compare rates online and even have lenders compete to give you the best available rate. Another benefit of many online lenders is that they usually offer lower costs since the middle man is cut out of the picture.

Many people assume that interest rates are pretty much the same across the board from one mortgage refinancing company to another. This can be a costly mistake. While it's true that the rates won't vary by great amounts, even a difference of as little as a quarter of one percent can mean thousands of dollars in savings over the life of the loan. So how much can the loan rate vary from lender to lender?

Recently a traditional brick and mortar mortgage company was offering a 6.00 percent interest rate on a 30-year fixed-rate mortgage. On that same day, an online mortgage refinancing company was offering an interest rate of 5.875 for the same refinance terms. While that may not seem like much of a difference, that small fraction of a percentage would equal more than five thousand dollars over the life of the loan. In addition to savings on interest, this lender was also offering consumers with immediate savings in the form of a lower origination fee and a free appraisal. This could save borrows hundreds of dollars.

The only way to find out which mortgage refinancing companies are currently offering the best rates is to shop around and compare. Be sure you look at the total APR and that you're being given apples to apples comparisons. You'll also want to make sure that you're not being quoted an adjustable interest rate as opposed to a fixed interest rate.

Adjustable rates may seem more attractive at first, but when that interest rate increases (and it most likely will), you're going to be stuck wondering where your great deal went. When you do find the lowest rate, get the details in writing and lock the rate in to avoid any unpleasant surprises. By taking the time to research your lending decision, you'll be able to pocket the savings and make your dollars stretch further.


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