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Who Offers the Best Home Mortgage Refinance Rates – Large or Small Lenders?

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Homeowners looking to refinance their existing mortgage generally place low home mortgage refinance rates at the top of their wish list. There are a number of factors that contribute to mortgage interest rates, but some of them are not in a homeowner's control. The state of the economy, for instance, is certainly not within the control of any one person, and general economic factors have a large impact on interest rates.

Homeowners do have choices when it comes to other considerations that affect their home mortgage refinance rates, such as the type of mortgage they select and the lender who will provide their mortgage loan. When it comes to mortgage lenders, the average homeowner usually selects a larger company for their mortgage loan, but this does not mean that smaller lenders are a bad choice. Since the larger mortgage lenders control more of the mortgage lending market, smaller lenders are forced to be more competitive in order to stay in business. One way that smaller lenders can compete is for them to offer low home mortgage refinance rates.

Smaller mortgage lenders have another advantage over larger lenders; smaller companies in general are leaner and meaner. Larger lenders' higher administrative and operating costs often result in higher home mortgage refinance rates and loan costs which are passed along to mortgage borrowers, since companies need to remain profitable in order to stay in business.

Especially in times of tight credit lending, smaller lenders may offer an additional advantage over larger lenders. Large companies are bound by inflexible company policies when it comes to underwriting loans and making decisions on loan approvals, while smaller lenders can be more flexible and take individual factors under consideration in the underwriting approval process. In addition, smaller lenders are known for having a good network of personal contacts within their business community; this personal referral network can result in more advantageous mortgage terms and conditions for borrowers who are linked into the network.

This information is not meant to imply that smaller lenders are the best choice for finding optimal home mortgage refinance rates. The savvy homeowner will take the time to shop mortgage refinance loans across a multitude of lenders - both large and small - in order to discover the top selection in mortgage refinance loans.