Probably the deciding factor that joins a lender and a borrower is the mortgage rate. After all, when there are choices available to any consumer, a potential home buyer will more likely be drawn to the best (read: lowest) interest rate offer. The lower it is, the more money they could save in the long run and the easier the payments will be. If finding low mortgage rates on refinancing is your goal, here are a few tips you can use:
Maintain your credit.
A solid credit rating (or at least a decent one) makes you a desirable borrower. A lender will look at you and see someone who is a responsible, reliable payer. This means that the lender will get their money back as agreed. As a reward for your trustworthiness, the creditor will offer you low mortgage rates in case you want to refinance. So if getting these low rates is your goal, make sure your credit standing is in tip-top shape.
Never make late payments.
If you want low mortgage rates on refinancing, try not to miss any payments on your current loan. Making late payments or missing any payment will raise red flags and alert your lender that you might not be reliable borrower after all. Mortgages are built on trust and if that's something you cannot offer, no lender in its right mind will give you the time of day.
If you've been a very good payer (at least for the last 12 months), you could expect to be on the receiving end of a low mortgage refinance rate.
Document your lock-in period.
Once you find a low mortgage refinance rate, get it confirmed through a written agreement. You need to show proof that you have, indeed, been offered that specific interest rate. This document will help you take advantage of low mortgage refinance rates – provided, of course, you obtain the loan within the closing period.