What are some ways to compare home refinance rates?


Quick Answer

Two online resources for comparing home refinancing rates are the Zillow Real Estate Network and MyFICO websites. The Zillow website lets visitors input their individual home values, location and FICO credit scores to bring up a list of lenders with their respective APRs, and MyFICO displays regional rates based on FICO scores and loan types. A credit score should be determined or confirmed before comparing refinance rates, as advised by Fox News.

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Full Answer

To use Zillow's search and rate comparison tool, input a zip code, credit score, estimated property value, current balance and monthly income. The tool searches for lenders by the desired loan type, such as 30 year fixed, 15 year fixed or 5/1 ARM, and the input-based lenders that the tool displays show APR rates and estimated monthly loan payments. Additional lender information, such as customer reviews and company profiles, are also included in the search results.

Before comparing rates, be sure that the actual value of the property being refinanced is known and confirmed. A lender may place a significantly lesser value on the property than what was assumed. Also consider the possibility of the interest rate of an adjustable rate mortgage, or ARM, increasing if there is no intent to move or sell in the near future. A fixed rate mortgage can be the better choice when the intent is to stay in the home, as advised by Fox News.

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