30 year fixed mortgage rates continue to hover at historic lows and refinancing is an attractive option for many families. But here are some things to do before you sign on the dotted line.
Search online at Web sites like Monster Moving and Bank Rate to find current home mortgage rates and required down payments, if any.
Call and verify the advertised loan rate. Make sure you speak to a loan officer who confirms the advertised rate. Better yet, ask to have the advertised offer emailed to you for your records.
Compare your current mortgage rate with the advertised rates. If you can lower your mortgage by at least half a point, it may be time to refinance your home mortgage. If you can reduce it by two points, then it is almost assuredly time.
Decide how long you are going to stay in your current home or at least how long you think you might stay in your current residence. Then do the math. The better your credit score and the more equity you have in your home, the better the deal you will get.