Compare Lenders and Rates
Ready to compare your refinancing options? Here’s what to look for.
Comparing rates and lenders will give you a clear picture of your options so you can get the best deal for you. Here, we'll explain how to choose a lender you can trust, and how to compare the rate quotes.
How to Find a Lender
There are many ways to choose a reputable lender. You can start by checking with your current lender. You can also ask for a recommendation from your family or friends, or visit your local bank branch, credit union, savings institution or mortgage company.
Here are some questions to ask as you compare your lending options:
- Do you currently have a relationship with the lender? If so, are you happy with it?
- What level of service does the lender provide?
- How easy will it be to access your accounts, pay your bills and get help?
- Does the lender offer a variety of refinancing options?
- Which loan program is the best for your needs?
- How much does the lender charge in origination fees?
Contact several lenders before making a decision about your refinance. That way you can make sure you’ve done your due diligence and are getting the best loan.
How to Compare Rates
Shopping for refinance rates can be a bit confusing. Sometimes a bank’s advertised rates appear lower, but they don’t disclose all of the fees that you’ll have to pay to get that rate.
So when comparing lenders, be sure to compare APR which takes into account some of the fees you will be required to pay. In addition to interest rate, ask about additional costs like discount points you will need to pay to get a rate and other fees the lender may charge.
The government requires all lenders to disclose the APR, because it shows you the total cost of a loan. It tells you the interest rate your bank will charge for your loan, but also factors in any additional costs that you’ll need to pay to get that rate—like discount points or lender origination fees.
Using the APR is the best way to compare apples to apples when you’re trying to choose between lenders.