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The fluctuating economy has caused the mortgage interest rates to reach an all time low. This is seen as the best time for home owners to have their adjustable rate mortgages refinanced to a fixed rate mortgage.

Why? Simply because when the rates fall so hard, they will eventually rise, and you don’t want to get stuck with a rate that is higher than you can afford.


So when you decide that a fixed mortgage rate is the best option for you where do you go to refinance those mortgage rates? Who has the lowest mortgage rate at the moment, when comparing banks and, mortgage lenders?

I could give you a simple answer and, say, go for Bank of America or opt for Wachovia. However, I have to make this a long strung answer simply because; there is no flat rate answer. Some banks may be offering a rate as low as 2.3% but, is that the best rate for you?

As a mortgage shopper you have to answer some questions before you can decide to refinance your mortgage at the lowest rate.


Questions to ask before Refinancing:

  • How long do you plan to hold on to the mortgage? If you only want to hold on to the house for a year or so then it makes no sense to bring down the interest rate, you will not even break even after the closing costs etc. are paid. However, if you want to hold on to the house for at least 3-5 years then definitely refinancing is the best answer for you.
  • Are you planning to buy a new home or refinancing an old mortgage? Again, when you are refinancing, there are different options that will bring down the points and, rate. If you are purchasing a home, you will get a better rate.
  • Then we need to consider the APR. The Annual Percentage Rate allows you to compare different costs of the loan over a specific period of time. This can show you an accurate picture of what various lenders are charging you. The difference can be figured out in terms of the duration of the due date for the interest. A. Pro-rated interest allows you to have fifteen days more to pay the mortgage if it is due on say, March 15. You would have till March 30 to pay the bill. Some lenders differ in this and, while some lenders use 15 days, others may use 30 days, and still others stop the ball at one day! This will cause the rate to differ widely and, a lender offering a rate of 2.1% lower than all others may not have any pro-rated interest days. So if the mortgage is due on the 15th you would have to pay the same day!
  • Now let’s talk Credit Score. I know with the economy in shambles who has a good credit score? So that’s the good part. Since so many people have been forced to declare bankruptcy and, foreclose, banks and, lenders are giving loans and, refinancing mortgages despite the credit score. So as long as your history is credible, you have a chance of refinancing your loan at a great rate.


The Lowest Mortgage Rate Lenders

Considering the factors involved, I cannot in good faith ask you to go to a lender who is giving the best rate.

Your best option is to shop around and, find one who will GIVE YOU the lowest mortgage interest rate according to your needs and, requirements.