To find the best refinance rates, it's important to prepare personal finances so that banks feel confident agreeing to the loan. Never go with the first lender because different lenders will offer not only different interest rates, but different terms and conditions on the loan. Talk to a community bank, a credit union, a direct lender and a national bank to find out the different options and programs available to borrowers, as recommended by HSH, a leading online mortgage resource center.
To find the best interest rate, comparison shop on the same day. Interest rates change daily, so taking a week or longer to compare all of the lending institutions will result in changing interest rates that can end up being higher than the original quote. It also important to pay attention to fees associated with the loan, as the lender with the lowest interest rate may have high fees that increase the monthly payment.
Another way to lock in lower interest rates is to build a relationship with a lending institution, according to The Wall Street Journal. Lenders are more likely to feel confident approving a loan to a current customer or a customer that has a considerable amount of money deposited with the bank.