Wednesday, May 11, 2011

Best Mortgage Rates Today to Refinance My Home Loan - 5 Tips

mortgage rates trends

By Robbie T. James

The New Rules for MortgagesYour home is probably your most valued possession. In fact, for most homeowners, it is the most expensive thing they have ever purchased in their lives.

Somehow, after signing that first - and also possibly second - mortgage contract, most of us settle into the monthly habit of writing that mortgage check or making that online mortgage payment: same payment, month in and month out. Given that so many of our other monthly expenses, such as utilities, gas for our car, and food change a bit from month to month, when it comes to finding ways to cut back our expenses we tend to focus on those rather than fixed expenses like our mortgage payments.

That is why every few years, it is a good idea to revisit the idea of refinancing your home loan. A refinance simply means taking out a new loan while paying off the existing loan - and sometimes receiving some cash (converted home equity) in the process.

Potential benefits to mortgage refinance depend upon a number of factors and vary on a case-by-case basis. Depending upon how you structure your refinance, benefits can include:

a. the ability to cash out equity in your home

b. making lower future monthly payments

c. realizing savings on the total cost of your loan

Of course, one of the most important considerations when deciding about whether to refinance has to do with whether you can qualify for a low refinance rate. If you are wondering, "How do I find the best mortgage rates today to refinance my home loan?", here are 5 tips to getting yourself the best rates:

1. Get a feel for recent mortgage rate trends:

Look online for charts showing the "historical national average fixed mortgage" rates on 30-year fixed loans. It is helpful to look at three month, one year, and long-term rate trends. This will give you a good feel for where rates are now and where they have been recently.

2. Your new mortgage rate will depend on both historical trends AND your credit score:

But not only does the current average interest rate play in role in your refinance rate: also taken into account by your refinance lender is your credit score.

3. Compare your current credit scores from all three reporting agencies to what it was when you qualified for your current mortgage loan:

Request from TransUnion, Equifax and Experian (the big three monitoring and reporting agencies) your most recent credit report. Compare your current average credit score (across all three) to what it was when you signed your current mortgage.

4. If rates are down or your credit score is up - consider a refinance right away:

Now, looking at the research you have done so far: if average rates are down and your credit score is up, it is basically a no-brainer that you should apply for refinancing. Even if only one of these is the case, though, it is worth applying for a mortgage refinance loan to find out how you qualify.

5. If rates are the same or up - or if your credit score has not changed, consider your refinance options:

On the other hand, if rates are about the same and if you have the same or a worse credit score, you will likely not be able to qualify for a better interest rate than you have now. However, you still may want to refinance if you want to spread your loan out over more time in order to reduce your monthly payments. And, refinancing could still be an option if you want to take on a bigger loan in exchange for cashing out some of your equity in order to pay down higher-interest debt.

Consider these 5 tips for finding the best mortgage rates today to refinance your home loan.

Find the best low-rate mortgage refinancing lenders at: Best-Rate Home Refinancing Lenders.

Article Source: http://EzineArticles.com/?expert=Robbie_T._James

mortgage rates trends

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