How to choose the right refinance lender
efinancing is only worth it if you partner with a lender whose terms match your financial goals. In this guide, we’ll walk through the three key criteria you should use to choose your refinance lender.
1. Compare interest rates and APR
Don’t just look at the headline rate – APR reflects both the interest and the lender’s fees, giving you a truer cost comparison. Always request a Loan Estimate from at least three lenders and compare side by side.
2. Evaluate closing costs and lender fees
Some lenders offer lower rates but tack on higher origination or underwriting fees. Add up all closing costs and divide by your estimated monthly savings to calculate your break-even point. If you plan to stay in your home past that date, it’s usually worth it.
3. Check lender reputation and customer service
A smooth refinance depends on clear communication and timely document handling. Read recent customer reviews on Trustpilot or the CFPB database, and consider a lender whose support team you can easily reach by phone or chat.
Next step:
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Pull your current mortgage statement and credit report.
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Request Loan Estimates from three top-rated lenders.
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Calculate your break-even point to see which offer comes out on top.
— MortgageRefinancingBlog.com team