Secrets to Getting the Best Refinance Loan Rate
The path to finding the best refinance loan rate isn’t a mystery, but it does require some effort. As with any other loan, it pays off to patiently shop around and compare rates before signing any agreement.
However, there are some steps to take before and during the process that can help you save money and secure the lowest possible loan rate.
Before You Apply
- Check your credit score. Your credit history will affect the rate you’re offered, so knowing your score before applying can be helpful when it comes to negotiation.
- Shop around to compare. Businesses like banks and private lenders often charge different rates, so researching multiple options can help you secure the best rate.
- Read loan reviews. Find out what other people are saying about different lenders by reading customer reviews on sites like Yelp and Google.
- Know your home’s equity. Make sure you understand how much equity your home currently has to use as leverage when bargaining with the lender.
- Set a budget. Before you start applying, decide how much you can realistically afford to pay each month and stick to it.
During the Application Process
- Stay organized. Keep all documentation (e.g. bank statements, bills, pay stubs) organized and in one place to make the process easier.
- Be honest. Always provide accurate information when filling out loan applications. Lying will backfire and can cause lenders to turn you away.
- Negotiate. Even if you’re offered a good rate, try to haggle and see if you can get it lowered even more.
- Timing is everything. Look at the current market rate when deciding when to apply as rates can fluxuate unexpectedly.
- Understand loan terms. Take the time to thoroughly read all loan terms and make sure you understand everything.
Securing the best refinance loan rate isn’t impossible, but it does take some effort. Following the steps outlined in this article can go a long way toward securing a lower rate and helping you save money.
