Can You Negotiate Refinance Rates?
As with interest rates, you can negotiate refinance rates. However, it’s better to present your preferred lender with offers from competing lenders. In addition, your refinance rate negotiation is more likely to work in your favour if you can prove you are a worthy borrower.
How to Negotiate Refinance Rates
The process of negotiating refinance rates is very similar to the process of negotiating your standard interest rates.
The first step is comparing rates. With refinance rates, you want to pay attention to more than just the interest rates. You also want to compare registration fees, application fees, settlement fees, valuation fees, and other fees associated with refinancing. Some lenders don’t charge all these fees. Other lenders charge them in some instances but waive them in others. Loan features are another aspect you will want to compare between lenders. Do you want an offset account? What about a line of credit? Are you allowed to make extra repayments? These are all features you should consider when negotiating to refinance rates.
Second, you will want to request quotes from various lenders to see which type of loan fits your needs the best. With these quotes in hand, you can either approach your current lender about your refinance rates or approach a different lender.
Third and most importantly, you will want to prove your worth as a borrower. Your preferred lender may be willing to negotiate your refinance rates if you can establish that you have a good credit history, a strong, stable job, earn a lot of money, make on-time repayments, and are in excellent financial standing.
If you want to refinance your current home loan, Mortgage House can help. You don’t have to negotiate with us because we offer the most competitive interest rates and offer a variety of features on all of our loans.