Low Mortgage Rate Refinance

If you are a homeowner, there may come a time when you decide to refinance your mortgage loan. One of the main goals is to get a low mortgage rate refinance loan. If you know you can obtain lower rates than you already have, it may be the right time to refinance. This can be done through banks, credit unions and mortgage refinancing companies. There are also mortgage brokers who work with a variety of lenders to get you the lowest rate possible. You should shop around for the right company before making a decision because it can make a difference in the rate you get.

You might want to make a list of the refinance companies in your area, then run a check with the Better Business Bureau to make sure they do not have any unresolved complaints. If a company does have complaints with the BBB, mark them off your list. From there, you can begin contacting the companies and speaking with representatives to get a general idea of what they have to offer and what kind of customer service you will receive. If you don't like the impression a certain company gives you over the phone, mark them off the list.

Once you have a small list, such as 3 possible companies, you can meet in person with each one for an initial consultation. During this consultation, you can ask any questions you may have about refinancing and even get an estimate on the type of mortgage you are looking for. The two main types are fixed and adjustable rate (ARM) mortgages. A fixed rate mortgage has interest that stays the same, while the interest on an adjustable rate mortgage fluctuates.

There are certain factors that will affect your interest rate, your credit rating being one of them. If you have excellent credit, you are likely to get the lowest rate possible. Also, the term of your loan makes a difference. Usually, a 15-year loan will have lower interest rates than a 30-year loan. This is because the shorter term demonstrates that you are financially stable enough to handle a larger payment and your loan will be paid off faster.

When you to obtain a low mortgage rate refinance loan, the process is much like getting your first mortgage. Basically you are trading one mortgage in for another. You should do some research and make sure the time is right for you to refinance. If your credit has improved, housing rates have dropped or you are ready to switch the type of mortgage you have or change your term, it may be a good time to refinance. The lender you choose should discuss everything with you in detail without pressuring you to make a decision.