Refinancing Tips · April 28, 2025
How to Find the Best Refinance Rate in 2025
Refinance rates vary significantly between lenders. Here's the strategy to ensure you're getting the most competitive rate available — not just the first quote.
Getting the best refinance rate requires the same approach as the best purchase rate: shopping the market, not accepting the first offer.
Why Rates Vary Between Lenders
Each lender has a unique cost structure, current pipeline volume, and appetite for different loan types. A lender that's aggressive on conventional refinances may not be competitive on FHA or jumbo. Rate variation of 0.25–0.5% between lenders for the same borrower profile is common.
The Broker Advantage for Refinance Shopping
When you apply with HMS, we submit your profile to multiple wholesale lenders simultaneously. This surfaces the most competitive offer across the market with a single credit inquiry.
Individual borrowers shopping multiple banks each pull your credit separately — potentially affecting your score and still not accessing wholesale pricing.
Comparing Quotes Accurately
Use the Loan Estimate (LE) — a standardized form every lender must provide. Compare:
- Interest rate AND APR (APR includes fees)
- Total closing costs (Section J of LE)
- Monthly payment
Don't compare rate alone — a low rate with high fees may cost more over your expected holding period than a slightly higher rate with lower fees.
Timing Your Rate Lock
Rates change daily. Lock when you're satisfied with the rate relative to current market conditions — not in hopes of it improving further. Markets are unpredictable; locking in a good rate is always better than gambling on better.
HMS helps borrowers track market conditions and advises on optimal lock timing. Call 309-222-8286.