Things You'll Need:
- Bank statements
- Tax records
- Pay stubs
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Step 1
Go through your finances and decide on how much money you can put into refinancing your mortgage. If you can put in a substantial amount, over 10 percent of the loan, you can often get a lower mortgage rate. When the money paid is higher in relation to the value of the home, loan companies feel they're taking less risk, which lowers the rate.
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Step 2
Watch and compare average mortgage interest rates by mortgage companies. They can vary throughout the year, and by comparing different companies, you can find the one that offers you the lowest rate.
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Step 3
Complete any unfinished rooms in your home. Adding a closet and flooring to an attic can turn it into a bedroom, which will increase the value of your home during an appraisal. If you can increase the appraised value of your home, the amount you refinance will be less in relation to that value, thereby decreasing the risk and the mortgage rate.
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Step 4
Contact a loan officer at your existing mortgage company. Explain that you want a lower rate and want to get the house appraised, want to put money into the refinancing and will look at a 15-year loan instead of a 30-year loan. A 15-year loan will have a substantially lower mortgage interest rate.
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Step 5
Bring your financial records, including bank statement, copies of tax returns and pay stubs, to a meeting with a loan officer at your existing mortgage company. Agree to a new refinanced loan with a shorter time period and a lower amount, subtracting the money you are using to pay off part of the existing mortgage.
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Step 6
Sign the new mortgage and enjoy your lower rate.
