How to Refinance Mortgage Rates

Refinancing your mortgage will decrease your interest rates and can save you a lot of money in the future.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• home
• mortgage loan
• equity
• lender

1. 
    

   The first thing in refinancing your mortgage is to understand the elements of how timing plays a crucial role with refinancing. If you have a mortgage and the interest rates are in your favor, than you should not automatically apply for refinancing.
   Evaluate if the variations of your new interest rate and your current interest rate to see if refinancing your mortgage will be beneficial to you in the long run.

2. 
    

   Then find your lender, (ex. Wells Fargo Mortgage). Most lenders make it clear to only refinance after your mortgage loan has matured, (ex. minimum of one year). Ensure that your new interest rate falls into the 2 percent rule. The new interest rate should at least be 2% lower than your current rate!

3. 
    

   Remember: You may only proceed to refinance your mortgage, if you have paid your loan faithfully for the last year. You don’t have any late payments for a whole year, than you can get your mortgage refinanced.
   If you are looking to refinance your mortgage, ensure that you have enough equity built, at least 5 to 10 percent. This will make your options bigger

Tips & Warnings

• Remember the 2% rule
• On time mortgage payments for at least 12 months

[bailey4]

on 7/9/2009 Good tips on how to refinance mortgage rates. 5*

[makaksa]

on 6/30/2009 Good to know. I didn't know about the 2% rule.

[skyedanzer]

on 6/29/2009 Better rates make you pay less money. Great points.

[sonni57]

on 6/29/2009 If you can get a better rate it's always good to refinance.