How to Get the Best Rate When Refinancing Your Home Loan with a Mortgage Arranger

When it comes to refinancing your home loan, finding the best rate available can make a significant difference in your monthly payments and overall savings. As a mortgage arranger, I always advise my clients to take their time and compare offers from at least three lenders before making a decision. But how do you know which lender is offering the best deal?

The answer lies in understanding what affects the Annual Percentage Rate (APR) of your mortgage. The APR is the all-in total of your mortgage costs, which can vary by lender, and will include your closing costs if rolled into your loan. It's essential to compare the APR between lenders, not just the rate.

To get the best rate available, it's crucial to shop around and submit multiple mortgage applications within a reasonable timeframe. The good news is that credit bureaus recognize this activity as comparison shopping rather than trying to open multiple lines of credit, so your credit score won't suffer. However, applying for new lines of credit before applying for a mortgage refinance can bring down your score.

To improve your chances of getting the best rate, it's essential to maintain good credit habits. Paying off credit card debt and reducing how much you use your cards can significantly bump up your credit score. Both parties must correct any errors on your credit report to change its information and reflect in your credit score. Before applying for a mortgage refinance, check your credit score and get a copy of your credit report.

If your credit score is below 760, you might not qualify for the very best rate lenders offer. However, there is room to improve your score and boost your savings. By following these three basic steps, borrowers can put themselves in the best position to get the lowest rate:

1. Compare offers from at least three lenders and pay attention to the APR.

2. Shop around and submit multiple mortgage applications within a reasonable timeframe.

3. Maintain good credit habits by paying off debt and reducing your credit usage.

By following these tips, you can secure a lower interest rate and enjoy significant savings on your home loan refinance. Contact me today to learn more about how I can help you navigate the refinancing process and get the best possible deal for your situation.

Home loan arranger refinance