With today's low interest rates, many people are refinancing and then refinancing again. In your haste to find the lowest rate before interest rates rise again, are you sure you are getting the "best deal"? What should you look at when comparing offers from different lenders? Of course, you start with the interest rates but you need to go beyond that factor to make an informed decision about the loan so that you end up with the loan that is really the best deal for you. Here is a checklist of things for you to consider and evaluate in making your decision.

Interest Rates - this is the most obvious difference for comparison

• Even zero point loans often involve many fees - find out all fees that you will have to pay
• Some lenders actually pick up all the fees and closing costs - a zero point- zero cost loan
• Some loans carry so many fees that they could outweigh other favorable factors

Rate Lock - is it available and what will it cost, if anything?

• How long until your rate lock expires? The longer the better!
• How long until your loan commitment expires? The longer the better!
• How long will it take to process your application? Usually, the sooner the better.
• How soon will you be able to close on the new loan? Usually the sooner the better.
• Remember - the longer the time it takes until you close on the new loan, the longer you will be paying interest at the old higher interest rate!

• How much will the lender lend you?
• Can you walk away with cash in addition to the payoff for your existing mortgage if you wish to do so?

• What documents and information will you have to produce?
• What conditions will be imposed - for example - will you have to pay into an escrow each month for taxes and insurance?

Prepayment Penalties - ideally there should be none at all

• If you have an existing second mortgage or home equity line of credit, will the new lender allow you to subordinate the existing loan to its new loan? If not, you will have to pay off that existing second mortgage or cancel your line of credit.

• Where will you have to go to close the loan?
• Can the loan be closed by signing the loan papers in the presence of a Notary Public and returning them to the lender without a formal closing?

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