Refinance Mortgage Rates

How to Find the Best Refinance Mortgage Rates

Deciding to take out a refinance mortgage loan is a big choice to make, but with due diligence, you could find the perfect loan for your property. There are a variety of ways to determine if a refinance loan is right for you, including whether it has great refinance mortgage rates. The costs behind a refinance loan can span from originator fees to the annual percentage rate, all of which should be included in your calculation to determine the affordability of the loan.

How do You Know if You Find Great Refinance Mortgage Rates?

As you’re looking through the available refinance mortgage loans, you’re should pay special attention to the interest rates of the refinance loan. You will need to compare the refinance mortgage rates with others you find, as well as your own current mortgage rate. If the new loan doesn’t have an interest rate that is lower than yours, then you should avoid applying for the loan, at least for the time being. Once the loan drops at least 1% lower than your mortgage loan, you can consider applying.

Other refinance mortgage rates that you need to look over are the originator fees, annual percentage rate and others that are commonly associated with mortgage loans. Make sure to add everything together to see how much you will have to pay upfront and over the long-term, then see when you will recoup what you’ve spent and start to see savings.

Where to Find Refinance Mortgage Rates

If you have access to the Internet, you can use the Web to find deals on refinance mortgage rates. There are a variety of Web sites that offer free quotes, allowing you to calculate how much you could save by using their loan product. Others will require you to come in or have a phone call with a representative. By doing this, you will be able to get a more accurate quote. Basic information about yourself, your employment and your finances will be asked to help the calculator determine the mortgage rates you’d receive. Make sure to go to a lot of different lenders to get a nice list of quotes for you to analyze and choose from.

You can also find refinance mortgage programs that cater to offering borrowers with lower mortgage rates. Two programs in particular are the Home Affordable Refinance Program and the Make Housing Affordable program. Just visit your current mortgage servicer or others in your area and you will be able to get information about programs that you may be eligible for.

Repair Your Credit to Lower Mortgage Rates

Certain rates that you are charged for your mortgage are determined by your credit history. If you’re able to improve your credit rating before you apply for a refinance mortgage loan, you may be able to lower the rates you receive even further, making it more affordable and less risky. All you have to do is request a free copy of your credit report from the three credit bureaus – Equifax, TransUnion and Experian. Improving your credit score can also improve your chances of getting approved for a loan. Find out what outstanding balances are holding you back and try to arrange a settlement, payment arrangement or consolidate the debts with a personal loan.

Shortening Your Term and Lowering Your Interest Rates

The best time to get a refinance mortgage loan is when you’re able to shorten the loan’s term and the interest rates. Let’s say you have a current mortgage loan with an interest rate at 5%. If you took out a $200,000 mortgage with a 30-year fixed-rate term and you refinance with a loan that is a 30-year fixed-rate that has a 3.875% interest rate, you could save $177, bringing it to $897, giving you about $25,000 in savings over the term of your mortgage.

If you decide to shorten the term to a 25-year mortgage loan with the same rate, you could end up dropping your monthly by $100 instead, to $993, but you could end up saving close to $50,000 over the life of your loan. You can find a variety of lenders that now offer terms that are 25-years, 20-years, 15-years and 10-years.

Try Getting Refinancing Through Your Bank

If you have a great long-term relationship with a bank you have an account with, you can try to obtain a refinance loan through them. Most banks are lenient with loyal customers and you could end up getting great mortgage rates for your refinance loan.