Getting a lower interest rate is the true key to saving money when refinancing a home loan. Many homeowners are quick to take one of the first offers they receive based on the lower interest rate alone. However, there are some things homeowners can do to ensure that they get the absolute lowest home loan interest rate possible.

Refinancing a mortgage is not as hard as many people make it seem. The tricky part though is finding the lowest interest rate possible for your situation. The good news is that mortgage rates are near all-time lows right now, but that does not mean that every homeowner will get them. It does mean though that there is plenty of wiggle room for the majority of homeowners that will allow them to get a lower interest rate then they thought possible.

The savings you can achieve from just shopping around to different mortgage lenders and banks can be enormous. Always remember that even a slight rate increase may cost thousands of dollars in the long term. Sometimes it actually is better to choose the option that costs more in costs, points, and closing fees, than to choose the cheaper closing option and paying a higher interest rate. Always shop around to competing lenders and banks to see which is prepared to offer you the best deal.

When you do receive an offer you like, ask to get it in writing and have it signed. Typically, you will need to request this because some mortgage lenders or banks may be hesitant to ensure a truly low interest rate for even a few days. Therefore these loan interest rate guarantees usually are valid for only a few business days. That means that you should have other lenders in mind prior to applying the first time.

Always have an alternate mortgage lender or bank that you have researched and shows potential. If you do indeed receive an offer you like, you can take it to the competing lender or bank and see if they can better it. Most of the time, even if you believe you are getting the best deal possible, a mortgage lender or bank will at least match, but usually make a better mortgage refinancing offer. Even if they are able to shave an additional .25% off the interest rate, that is a good deal of money saved.

Always compare different lenders and know which ones will meet your demands and requirements. Then, when you get an offer you like, shop it around. This adds credibility to your statement about being able to get a better deal elsewhere. This is also a great way to ensure you are able to get the absolute lowest interest rates possible when refinancing a mortgage.

-M Petrone

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