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You may be like the millions of other Americans who are looking to lower their monthly bills by finding the lowest mortgage refinance rates for their home loan. Consider not only the current conditions affecting interest rates, but ways that you can prepare for the refinance process and get the best deal.

Current Conditions for Interest Rates

The trends for mortgage refinance rates are in a word: low. And they seem to be holding steady. Mortgages at 30-year fixed rates are running about five and a quarter percent and this trend has been steady for several weeks. Fifteen-year fixed rate mortgages are being offered at rates of less than five percent, while adjustable rate mortgage rates are slightly over 5%. This is due largely to the prime interest rate, which has been decreasing.

As far as people applying for new mortgages, this activity has generally been increasing. Many feel that this could be due to the government’s “Making Home Affordable” package and the greater overall economic stimulus package. Many homeowners are choosing to refinance, but fewer than expected are applying for loans on new homes.

Real estate prices are continuing to fall as of the latest reports, however year over year declines in price have not been quite as steep – a small but positive change. Home prices are still lower than the peak in all metro areas.

Refinance Preparation

Before you begin the process of refinancing, consider doing some research first. It is not always easy to find the lowest mortgage refinance rates, but there are some things you can do to help the process.

Of course, the first thing is to ensure that your credit score is as high as it can possibly be. There are three credit bureaus which report your credit score to lenders: Experian, Equifax, and TransUnion. Contact them to get your current report. You can get the report for free if you have been denied financing for any reason recently.

Examine your credit report and your score closely. If it is low, make sure there is no erroneous information that is detracting from it. If you have any outstanding debts that still need to be settled, do that before you apply for a mortgage refinance.

Take the time to look online for a current listing of interest rates in your area. It is easy to find both the lowest and highest mortgage refinance rates and use this information to help you decide if you are getting a good deal from a lending institution. But remember that someone who has a lower debt-to-income ratio than you, or has more equity in their home, will benefit from receiving the very lowest interest rate.

Get your paperwork together before you approach the mortgagor. Such items as your bank account statements, previous year’s tax return, payroll check stubs, investment account statements, and a total of all monthly bills will be required to complete the refinance.

For many Americans, the time for finding the lowest mortgage refinance rates and lenders willing to negotiate a great deal has never been better. Be prepared by following interest rate trends, having all your paperwork gathered, and knowing your credit score. These are the best tips for finding the best rate you can.