Finding the Best Refinance Rates

Even with home mortgage lenders crawling out of the woodwork, the chances are good that you won't find the best refinance rates by sitting on your couch. But thanks to the Internet, you don't have to travel far from that comfy couch to get a great rate on a mortgage. Here are some helpful tips for finding a rate that fits your finances:

Shopping for mortgage rates

If you're going to dig up the best refinance rate, look around. Go online to see what local lenders are offering. Make a comparison chart, and include not only rates, but closing costs, as well.

A little knowledge; a lot of help

Before you start your search for the best mortgage refinance rates, you may want to get an overview of some of the differences between mortgages. Here are a couple of general concepts to get the ball rolling:

1. Fifteen- and 30-year mortgages are common choices, but many people are opting for adjustable-rate mortgages (ARMs), which include up-front teaser rates that are adjusted upward after a period of time.
2. The annual percentage rate (APR) offered by many lenders is calculated to include closing costs and the note rate.

Playing the rate game

Mortgage rates go up and down, based on the whim of the inflation-sensitive Federal Reserve. Other factors are involved, but the best way to play the game is to pick your desired mortgage interest rate target, and then refinance when changing rates call for it.

The moral of this story is to persevere until the best refinance rate comes to you. Get on the Internet and do some legwork. With a little digging and a lot of number crunching, you won't find the lost ark; but you should come away with a great rate.