Mortgage rates are based on the rates at which banks or financial lenders will lend money to you to purchase a home. A big part of what determines what rates the bank can offer is at what rates the Federal Government initially borrowed money to them. Lately, the Government has been loaning banks a lot of money at near 0% interest rates. This means that right now, as reflected in the record low mortgage rates around the country, is a great time for a lot of homeowners to refinance their home mortgage. There are however other things that will ultimately determine your mortgage rate, and luckily, you have some say in a few of these things that will directly affect your mortgage rate. That is why searching different lenders for the lowest mortgage rates is essential. Sometimes, you may find an amazingly low rate, but there are fees and hidden costs involved that in the long term will be more expensive in wasted costs or fees. Having the best credit rating you can before searching potential lenders mortgage rates is crucial. Your credit score will help determine your mortgage rate. The better your score is the better rate you will receive, and vice versa. A good credit score can mean better home insurance rates, and lower nesscary down payment. Finding out your credit score, and improving even 1 or 2 things on it can be very financially beneficial, especially in the long run.

Mortgage lenders are plentiful. You can find their websites all over the internet. Most of the time these lenders sites offer contact information, local branch information, special services that particular bank may perform, and a mortgage calculator to get a rough idea of how much you tend to save if you refinance. Once you find a mortgage rate quote that you like, shop that exact quote around to different potential lenders. They will get competitive and try to beat each others estimates wherever they can. They may charge a slightly higher rate but the closing costs and fees might be significantly less.

Make sure you are refinancing your home for the right reasons. Although mortgage rates in 2009 are currently at an all time low, this does not mean that a refinance is appropriate for everyone. Make sure to do proper research as it pays a lot to be knowledgeable when looking into a refinance. Know what your financial situation is and what you can comfortably afford to do. But make your decision soon as I do not believe these rates can stay as low as they are now.

-M Petrone

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