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By Christian Blake - November 24, 2007

Getting the best interest rate for your refinance or your HELOC is pretty easy. Here is a step by step guide:

1. Visit at least three different online lenders and examine their main page for their current Approved Interest Rate. Write down the rate. Make sure you take note of any restrictions (700+ FICO, No Stated Loans, etc.)
2. Make a list of the primary reasons you wish to refinance your home: need cash? paying for student loans? going to remodel? payoff credit cards? It's very important that you understand exactly why you are interested in refinancing your home loan.
3. Now that you have a rough idea of the current interest rate and you have a clear understanding of why you are seeking a refinance, I suggest you submit for a loan through what is called an "online middleman". They will take your information and forward it to four different lenders. Why is this good? Competition! These lenders will know by the very nature of how they acquired your information that they are directly competing against three other lenders for your loan, and that means they will offer you the best program they have. If you are happy with one of the programs they offer you, then great! But if you are able to wait a little longer…continue to step #4. One such mortgage middle-man is right here: Loan Help Now.
4. By now you should have four different quotes from four different lenders. You have serious information now, and you should take it to a local, community bank in your home town. Talk with their mortgage specialist. Present the offers that you have already obtained, and then let them try to beat it. If they can’t…then proceed to step #5.
5. If you are willing to go the extra mile, then this step is for you. You should now have five quotes worth of information from five different lenders. Take all those quotes and visit a local mortgage-broker in your area. Present all five offers, and see if the broker can beat all of them.

Additional advice:

When you finally speak with a loan officer or "loan specialist", ask the following questions:

1. Is there a prepayment penalty?

2. Are there administration fees? If yes, can we get them reduced or eliminated altogether?

3. How many points is this loan?

4. How much is the origination fee?

5. Are you making any money on the back end? Are you giving me the best possible rate?

6. Are you an experienced loan officer? How many loans have you closed in the past year?

7. This is the killer question that will always trigger a negative response from a loan officer who is either green in the business or who has earned a bad repuatation: "Before I can commit to this loan, I need to speak with at least two of your previous customers. May I have two references that have closed mortgage loans with you as their loan officer?"

With six different mortgage quotes, you are going to find the perfect loan. I can almost guarantee it. The only way to get this process started is to follow step#1 and to begin immediately.

And to all the skeptics who might frown on pulling your credit 6 different times, you should know that credit reporting agencies are very lenient when it comes to mortgage companies pulling credit. It won’t affect your credit score unless you pull 8 or more credit reports from different lenders within the same 30-day period, and even then it is very unlikely your credit score will be affected. Ask your nearest credit-reporting office; they will tell you the same thing.