A mortgage broker can be helpful in the lending process. A broker does not lend money; instead, they are a company which offers loans from a variety of lenders. The lender still controls the terms of the loan and makes the final decision on whether to offer the loan.

Lenders will often offer their customers a lower rate if they'll agree to accept a "prepayment penalty." They do this to minimize their revenue loss should interest rates decline and the borrower refinances or, in some cases, should the borrower sell the property.

Should I refinance with the company that currently has my loan? There are a number of dangers when considering your current lender for a refinance. Generally, they stem from the fact that the lender is in no hurry to give up your current, higher-rate loan.