How to Find Low Refinance Rates

Refinancing a home loan is the best way to get a lower interest rate on your mortgage and a more affordable payment. Of course, benefiting from a refinance involves finding the lowest refinance rate possible. Lender requirements for a refinance vary, as does criteria for getting a low refinance rate. If you are interested in acquiring the best rate possible on your new mortgage loan, there are tricks to help bring down your rate.

• 1

  Increase your credit rating before looking for a better mortgage rate. Credit ratings impact refinance rates. Improve your score by paying creditors on time and getting rid of credit card debt. Get your score from the My Fico website, and wait until your score is 680 or higher before applying for a refinance.

• 2

  Talk with your present home loan lender. Your current lender may offer the best refinance rate to keep you as a customer. Talk with a mortgage representative and ask for a free quote. A good payment history helps you get a better rate on your home loan.

• 3

  Seek out other lenders. While your existing lender may offer the best deal on the refinance, don't forget to compare rates with at least two or three other lenders. Use a mortgage broker for quick and easy comparison shopping.

• 4

  Pay mortgage points on the new mortgage loan. Get an even lower mortgage refinance rate by agreeing to pay discount points at closing. This extra fee costs 1 percent of the mortgage loan (one points equal 1 percent of mortgage balance), and each point cuts the interest rate by .25 percent.