How to Get the Best Refinance Mortgage Rates

Getting the best refinance mortgage rates is a little bit of a game. If you know how to play the game, you can get the best rates and save thousands of dollars over the life of your refinancing mortgage.

Difficulty: Moderate

Instructions

1. Improve your credit as much as possible.
   
   The primary determinate of refinancing mortgage rates is your credit. Several things affect your credit score that can be addressed relatively quickly. Old or false information that needs removed can take some time, but not as much time as building history with a credit card. Also, your debt to credit ratio needs to be low. Ask your credit card companies to increase the limits to quickly lower your ratio.

2. Shop around for refinancing mortgage rates.
   
   This can take some time, but it will save you big money. Start with local banks and their mortgage departments. Give them your mortgage terms, your credit score, and ask for a general idea of what a mortgage refinance rate might be for them. Be sure to know whether or not they are including discount points.

3. Ask your current mortgage company to beat the lowest rate.
   
   If your current mortgage company can beat the rate others are offering on a low rates day, start the process with them. If not, move on to the next step.

4. 
    

   Wait for rates to drop.
   
   Unless you are in immediate need for a cash out refinance mortgage, you have time to wait for rates to drop. Find out what the banks interest rates are tied to. If they track the federal reserve rate, you will know what number to watch. If they track along with treasury bills, you know it might cause a big difference in rates. Watch those key numbers and call again in the middle of the day when the rates drop.
   
   * See more tips on refinancing mortgage rates below.

Tips & Warnings

• Discount points will lower your rate, but increase the time it takes to break even on the refinance.
• Often your own mortgage company can waive some refinancing mortgage closing costs. Ask them to do so.
• See related articles on this page and informative resource pages below for more help.

Resources

• When to Refinance Rule of Thumb
• Get the Best Fixed Rate Mortgage Possible

[nancycarol]

on 11/11/2009 Thanks for great tips in How to Get the Best Refinance Mortgage Rates. *5