Look For the Lowest Mortgage Refinance Rates

Look For the Lowest Mortgage Refinance Rates

You may be like the millions of other Americans who are looking to lower their monthly bills by finding the lowest mortgage refinance rates for their home loan. Consider not only the current conditions affecting interest rates, but ways that you can prepare for the refinance process and get the best deal.

Current Conditions for Interest Rates

Recently, mortgage interest rates have gotten quite low and the trend seems to be that they are staying flat. For instance, the 30-year fixed mortgage rates are currently at right around 5 1/4 percent and that has not changed in several weeks. The shorter 15-year fixed rate mortgages are at a great rate of under 5 percent. Homeowners with adjustable rate mortgages, or ARMs, have seen some wonderfully low rates due to a lowered prime. Most ARM rates are at slightly over 5%.

Loan application activity has increased for the most part. Many pundits feel that this could be an early effect of President Obama’s “Making Home Affordable” legislation and the overall economic stimulus package. Many citizens are choosing to refinance but fewer are applying for a new home loan.

Home prices are still lower than they were at their peak in all metropolitan areas across the U.S. The one bright bit of news is that the decline year over year is less in all locales except Phoenix.

The Lowest Mortgage Refinance Rates

Before you begin the process of refinancing, consider doing some research first. It is not always easy to find the lowest mortgage refinance rates, but there are some things you can do to help the process.

Your credit score is one of the major factors in finding a low interest rate. You may already know that there are three major bureaus which compile the information that is used on your credit score and they are Equifax, Experian, and TransUnion.

Contact at least one of them and get your report. You can obtain it for free if you have recently applied for financing and been denied.

Once you have your credit report in hand, go over it with a fine-toothed comb. Look for any information that does not belong, or outstanding debts that have now been paid. If there are any old debts that you still owe, consider paying them off. This will positively affect your score.

Be sure to do some research on the current mortgage refinance rates in your locality before you contact a lender to refinance your loan. Once you know what the lowest and highest rates are, you are in a much better position to get the best deal. You can easily find this information online. Remember, though, that the best rates are offered to those who enjoy the lowest debt-to-income ratios and have the most equity in their home.

A refinance is much the same process as when you originally applied for the mortgage. So you will need the same paperwork. This includes proof of income, past tax returns, investment statements, checking and savings account statements, and a list of monthly debt obligations. Have all the necessary paperwork on hand before you visit the lender or apply for the refinance.

Mortgage refinance rates are at some of the lowest levels they have been in many years. This may just be the very best time for you to consider refinancing. Do your research ahead of time and compile your paperwork along with reviewing your credit score. These tips will help you find the lowest interest rate.

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