How To Lock the Lowest Mortgage Interest Rate When Refinancing Your Home

How do i get the lowest interest rate possible?

Lowest Mortgage Interest Rate Factors

Refinancing your existing mortgage to get a lowest mortgage interest rate is one of the best ways to lower your payment and lock in guaranteed extra cash flow each month. Of course everyone wants to get the absolute lowest rate, but a number of factors determine who gets the best mortgage interest rate when refinancing.

Home owners can lock in the lowest mortgage interest rate when refinancing by following these recommendations:

1. Be the best qualified. Borrowers with the best financial profile get the lower interest rates than borrowers who are not as qualified. Borrowers with higher credit scores get better mortgage rates. Borrowers who have more equity in their homes will also get a lower mortgage interest rate as well. Surprisingly, your debt-to-income ratio nor the amount of your liquid assets affects your interest rate at all, just whether or not you can qualify for your loan in the first place.
2. Determine which mortgage program is best for your needs. The best mortgage rates come either from shorter term loans such as a 15 year fixed rate or from adjustable rate mortgage (ARM) programs such as a 5/1 ARM where the rate is fixed for the first five years. A 15 year fixed rate mortgage will get you the absolute lowest fixed mortgage rate available but you will be looking at much higher payments than for longer term loans such as a 30 year fixed rate loan. Adjustable rate mortgages, with some rates starting below 4%, definitely offer the lowest interest rates and are even on a 30 year amortization, but those rates can change after the initial reset period.
3. Shop around. Once you have determined which loan program is best, you can then begin to shop for the best mortgage interest rate for the loan program that is best for you and with the best qualifications you can muster to refinance. When shopping, make clear what your qualifications are and exactly which program you are looking for. In this way, the mortgage rate quotes you get will be accurate and you will not be quoted a higher rate after you apply.
4. Lock at the right time. Mortgage interest rates fluctuate in both the long term and short term. Over the long term, we have seen mortgage interest rates decrease to historically low levels because the federal government, working with Fannie Mae, Freddie Mac and the Federal reserve, have worked together to push mortgage refinance rates lower in 2009. In the short term, interest rates have moved between the 4% and 5% ranges during the course of this year, so it makes sense to look for a good time to lock after you decide to refinance. Learn when best to lock your rate and also make sure you understand the mortgage rate lock process.

By knowing exactly how well you are qualified, selecting the right loan program, shopping around and locking at the right time, you can lock in the lowest mortgage interest rate available.

For a refinance rate quote, a free pre-qualification and advice about the best mortgage refinance program for your needs, complete a free rate quote request now!.

To see the current mortgage rates, visit our Current Mortgage Rates page.

If you have any questions that you would like to get answered by our expert mortgage brokers, please email us or call us at 1-877-868-2503.

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