Should You Refinance For Better Mortgage Rates?ReviewAdviceFAQ's

Should You Refinance For Better Mortgage Rates?

Refinancing a mortgage means paying off your existing loan via a new loan. It's basically a mortgage do-over. This time around, you can change what you don't like about your current mortgage. This guide will layout which situations call for refinancing and which mortgages are better left alone. We will also give quick reviews of the top lenders who offer enticing refinancing programs. Let's get started with the obvious question:

Should I refinance my mortgage?

First off, you're smart for asking this question. It's something everyone should consider right now. Mortgage rates are still low when compared to most any other time in history.

Why are you looking into refinancing? Do you want a lower interest rate? Do you want to shorten the loan's term? Do you want to switch between an adjustable rate and a fixed rate or vice versa? Are you looking to use some of your home's equity? Are you just curious to see if anything makes sense?

What you're going to want to do is to determine your refinance mortgage rates at your current lending institution. This can be as simple as a quick call with your loan officer. Ask them about what interest rate you could expect from refinancing. Then ask how much it's going to cost you. Ask about points, application fee, credit check, attorney's fees, title search, title insurance, appraisal fees, inspection(s), local fees, and document preparation. This is all necessary for determining if it's worth the effort.

Next, plug those numbers into Bankrate's Mortgage Refinance Calculator. How much do you stand to save? Save these numbers as you'll use them again soon.

I realize this is a lot of work. It will probably take at least one stressful hour to figure out these numbers. So let's bring this guide back to the basics for a second. To determine if you should refinance a mortgage, simply ask yourself if you are happy with your current situation. Also ask if you're handling it well. Do you feel confident you can keep paying as usual? Finally, ask yourself, "How has my financial situation changed since I took out my current mortgage?"

Do you know more about mortgages now than during your first go-around? Is there something you'd like to change this time? Are you more financially responsible than back then? If you're smarter and more financially sound than last time you applied, chances are you're ready to refinance.

Should You Refinance For Better Mortgage Rates?

Checking Refinance Mortgage Rates

As mentioned earlier, a quick chat with your lender should give you a good idea of rates. If you are considering switching lenders, there are plenty of options:

SoFi covers more than just student loans! Who knew? SoFi claims it can refinance a mortgage in as little as 30 days. That's a bold statement. SoFi is also a worthy candidate because you can pre-qualify before completing a full application. There are no application, origination, or other lender fees. This may be your first and only stop in your refinancing journey. However, SoFi doesn't cover every state. Check to make sure if yours is on the list:

  • Alabama

  • California

  • Colorado

  • Connecticut

  • Delaware

  • Florida

  • Georgia

  • Illinois

  • Indiana

  • Maryland

  • Minnesota

  • New Hampshire

  • New Jersey

  • North Carolina

  • North Dakota

  • Pennsylvania

  • Rhode Island

  • Texas

  • Vermont

  • Virginia

  • Washington

  • Washington, D.C.

  • Wisconsin

  • Wyoming

Quicken Loans, on the other hand, is America's largest online lender. The company has helped more than 2 million Americans refinance their homes. Quicken Loans has an A+ rating with the Better Business. Quicken Loans also has the highest customer satisfaction in the US for mortgage refinancing (2010-2014).

Another option is Loan Depot. Loan Depot is much smaller than Quicken Loans but promises a speedy quote because of that. Speaking with a mortgage loan specialist is a toll-free number away.

You've probably heard of Lending Tree. This company feels more like a traditional bank than the prior companies mentioned. You fill out a form requesting refinancing. Then you wait to receive offers - offers come in the form of emails. You can speak with lenders via telephone if you wish.

ACH (American Heritage Capital) Lending is the underdog in this competition. But despite being unknown, the company has amazing ratings on sites like Credit Karma. Just like an underdog, ACH Lending makes a big claim: "If your mortgage isn't processed within 45 days, we will pay the first month for you."

What You Stand to Gain by Refinancing

The rewards for refinancing are immense. Doing so will likely free up more money for you to spend elsewhere. You could buy a new car. You could open up a 529 college savings plan for your child. Or you could simply spend a little more money enjoying life. Whatever you choose, it'll likely be an improvement over your current situation. Enjoy!

Last Updated:

Join the discussion

Replying to Cancel

Your comment has been submitted and is awaiting approval from one of our administrators. Thank you for your readership!


Submitting your comment...

16 Great Money Saving Tips!

Cut expenses by $500+ a month. Download our FREE eBook today.

Download Now

Have you found our content useful?


Join our newsletter to receive the latest money saving advice, reviews, and offers!

YesI want to learn how to be a smart consumer!NoI'm not concerned about wasting money

100% privacy. We will never spam you.

Where should we mail you our
money saving advice, reviews & offers?

100% privacy. We will never spam you.

Adding your email to our mailing list.

Please wait just a moment

Your email has been added!

Thank you for signing up.


Looking for the best mortgage refinance?

We've researched and reviewed the top companies.

See Our Top 3

Advertiser Disclosure

In order for MoneySavingPro to remain a consumer free service, many of the companies covered in our industry reviews compensate MoneySavingPro for new sign ups.

However, the results of our comparison tools, the rankings of the providers and the information presented is not affected by compensation. Indeed, many of these companies approach us for an advertising partnership after we have already written a published their reviews.

While we try to research and review as many providers as possible in the 100+ industries we cover, we have not reviewed every company available.

Our rating system is independent of compensation and reflects our true understanding of the industry and the company based on a variety of factors. The companies that receive the highest rating will always be the providers that we believe offer the best value to the consumer.