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Mortgage interest rates are near the lowest point they have ever been. Because of this, refinancing to take advantage of the low rates is a great idea. Unfortunately, banks have tightened their lending requirements and have made it more difficult for people to take advantage of the low rates. Luckily, there are several ways a person could increase their chances of getting the lowest refinance rates.
The first way to get lower refinance rates on your mortgage refinance would be to consider a 15-year amortizing loan as opposed to a traditional 30-year loan. With rates as low as they are, many people could actually switch to a 15-year loan without seeing a drastic increase in their monthly payments. For example, if you had a 30-year, $200,000 loan with a 7% interest rate, you would have a monthly payment of $1,330 per month. If you look to refinance after 7 years, your mortgage balance would be reduced to $182,000. At a 3.75% rate, the 15-year mortgage payment would be only $1,325 per month.
The second way to get lower refinance rates on your mortgage refinance would be to put forth sizable equity into your home. Due to declining home prices across the country, many people now have less equity than they did at closing. In some situations, they may even have an underwater mortgage with negative equity in their home. Unfortunately, to take advantage of the low rates, a person will need to have at least 10% equity in their home. To get the best rates, and to avoid paying private mortgage insurance, a borrower will need to have at least 20% equity in their home. For those with less, this could require a large equity pay down.
The third way to get lower refinance rates on your mortgage refinance would be to shop around with numerous banks. While banks have tightened their lending practices, banks are still looking to lend to qualified customers. If you have a good credit history and sizable equity, then you will have plenty of negotiating power with lenders. To give yourself the most leverage, apply for a mortgage with several different banks. These banks should each provide you with a fee and rate quote, which could be used to negotiate down rates and fees with other banks.
What else can I help you with?
What are the lowest refinance mortgage rates?
The lowest mortgage refinance rates are currently around 2 percent.
Where can I get the lowest refinancing?
Mortgage Loan has an online tool that allows individuals to select their state to find out lowest refinance rates. It gives tips to finding the best refinance option, national refinance rates, and has a Best Mortgage Calculator.
Where can one find the lowest refinance mortgage rates?
To find the lowest refinance mortgage rates, one would have historically had to shop around. However, with the advent of online comparison tools, this is the new one-stop shop for anyone looking to refinance.
Who offers the lowest interest rate after a loan refinance?
Many companies offer low interest rates after a loan refinance. What company offers the lowest interest rate after a loan refinance may depend on where the person lives. Companies like quickenloans and discover both have low interest rates.
What are the lowest refinance mortgage rates for 2013?
On average, the lowest mortgage rates for refinanced mortgages is 3.32%. However, this rate can change due to the customer's credit score.
What bank has the lowest refinance rates?
You will want to comparison shop to try and find the lowest refinance rates. Mortgage rates change frequently and you will want to keep an eye on them and call around to see what types of rates you can receive from different banks. It helps to let lenders know that you are looking around and they will try and compete with the rates you have currently received.
How can you adjust and refinance your mortgage rates?
You can adjust and refinance your mortgage rate by shopping around for the best rates in your area. By checking the current rates of local banks narrow down the lowest rate. After that visit the bank and talk to their loan officer about refinancing possibilities.
Where can one find more information on the best home refinance?
The best home refinance information can be found most online comparing the top 10 Mortgage Options Refinance at today's lowest rates. In this information they can find current rates, featured lenders, information to refinance now, and even mortgage loan options.
Where may a person find information on the lowest mortgage refinance rates?
Information on the lowest mortgage refinance rates may be found at: ING Direct Un-mortgage; True North Mortgage; Prime Mortgage Works; Bank Rate; Calc XML; HSH; and Toronto Dominion Lending.
What are the options for obtaining the lowest cost mortgage refinance?
The options for obtaining the lowest cost mortgage refinance include comparing rates from multiple lenders, negotiating fees, improving credit score, and considering government programs or incentives.
What is a good way to tell if your bank has the lowest refinance rates?
To tell if your bank has good refinance rates, you need to compare it to other banks. Reviews of top ten refinance rates are available online. Alternatively, you could use a money saving website, such as Martin Lewis money saving tips, to look at the best deals for refinancing and see if they are similar to your rate.
When should someone refinance their home for the lowest rates?
To refinance the home for lower rates is not always the best solution. There are cases where it is the right decision to do so, for example if the goal is to reduce the interest expense. Another goal of refinancing the home is to consolidate the actual debts.
