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Step 1
Search online at Web sites like Monster Moving and Bank Rate (see below) to find current home mortgage rates, including time length of mortgages and required downpayments, if any.
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Step 2
Call and verify the advertised loan rate. Make sure you speak to a loan officer who confirms the advertised rate. Better yet, ask to have the advertised loan rate mailed or emailed to you for your records.
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Step 3
Compare your current mortgage rate with the advertised rates. If you can lower your mortgage by at least half a point, it may be time to refinance your home mortgage. If you can reduce it by two points, then it is almost assuredly time.
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Step 4
Watch interest rates. If you currently have an adjustable mortgage interest rate that is a half to two points above the fixed current rates, the time might be right to refinance your home mortgage into a fixed rate.
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Step 5
Decide how long you are going to stay in your current home, or at least how long you think you might stay in your current residence.
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Step 6
Do the math. Will you pay more in closing costs than you will save on your remaining monthly payments in your current home if you refinance?
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Step 7
Choose the bank that offers you the lowest interest rate and best overall deal.








