Should I choose the lender with the lowest interest rate?

When doing your comparison shopping for lenders consider that lenders can structure financing and refinance loans in many ways:

  • Charge higher fees, and offer a low interest rate.
  • Charge a higher interest rate with lower fees.
  • Ask each lender what their interest rate is for a zero discount point loan that’s based on a 30-day or 60-day lock period.
  • Ask each lender what they charge for an origination fee.
  • Ask each lender what they typically charge for a loan, i.e. fees for brokers, processing, underwriting, etc.