How the home refinance comparison works
Make sure you're not overpaying on your mortgage. Start now, and our trusted provider, GuideToLenders, will show you the latest home refinance rates in minutes. Then, you'll see if you can save by refinancing your home loan. Plus, this offers a broad comparison and searches up to 170 lenders.
How the mortgage comparison calculator works
- Complete just one form online (takes less than 5 minutes).
- Compare refinance rates (search up to 170 lenders and show the best options).
- Choose the option that's best for you (all lenders are fully licensed).
Rates are always changing
Even if you started your mortgage a few years ago, you may be able to find a lower rate today by refinancing your mortgage loan. There's no minimum time period to have a mortgage before you can refinance. In fact, some people refinance in as little as a year. It's easy to simply check mortgage rates every few years to make sure you're not overpaying.
Start online now and see if you'll save in minutes.
When to refinance a home loan
First, start here and compare refinance rates online. Choose a rate, then try a mortgage refinance calculator online to see your exact savings. Keep in mind, you'll want to consider any fees or costs of starting your new loan.
How refinancing your home loan works
It's much easier than you may imagine. The search process is similar to finding your first mortgage. It's best to compare rates and find the best rate and lender for you and fill out their application. Your new lender will then move the balance of your old mortgage to the new loan. That way, your balance will stay the same. The only difference will be the interest rate, and that's how you can save. Your new lender will start sending you your updated monthly mortgage bill.
Your lender will contact you and can guide you through the process. They can even explain the finer points on the different mortgage types and what's best for you.
FAQs for home refinancing
Our friends at GuideToLenders receive plenty of questions regarding home refinancing. Here are some of the commonly asked questions and their answers:
What's the difference between interest rate and annual percentage rate (APR)?
The interest rate is the cost you will pay each year to borrow the money. It does not reflect fees or any other charges you may have to pay for the loan. Interest rates are important, but you should also consider on APR when refinancing your mortgage. APR accounts for both the interest rate and any fees, so it's a better reflection of what you'll actually pay.
Comparing APR only makes sense for the same types of loans. You can't compare APRs for a 30-year fixed mortgage vs. a 15-year adjustable-rate mortgage (ARM).
Can I refinance my new mortgage again if rates drop in the future?
Yes. You can essentially refinance any home loan at any time. Refinancing once now doesn't disqualify you from refinancing in the future.
How does a cash-out refinance work? Can I get one?
Yes—most lenders in this program offer this benefit. This means if your new mortgage is for a higher amount than what's left on your old mortgage, you can get the difference (or some of the difference) back in cash. For example: You have a home worth $250,000 and owe $150,000 on your mortgage. You now have $100,000 in equity. That means your new lender will move the balance (also called the principal) of your old mortgage, add your equity to the new loan, and simply write you a check for the equity.
What percentage of my mortgage payment goes to interest?
The exact amount of each payment that goes to your loan amount (called principal) or interest depends on how much you borrow, the length of the loan term, the interest rate, etc. Your lender will provide the exact details and payment schedule.
Is there always an origination fee for refinancing?
There will usually be some type of fee or cost to officially start your new mortgage. Your lender will let you know what the fee is.
Can I add my property taxes and insurance in my refinance mortgage?
Yes. This is called "escrow," and it's very common. You can lump everything into one monthly payment.