Do the math.
When you're looking to refinance, you'll probably encounter lenders offering zero closing costs and fees. While this may seem attractive, they may not always be good deals for you. More often than not, these offers involve a higher amount of mortgage rates. This will mean that you will pay more over the long term. If you're looking for low mortgage rates for refinancing, try to consider the total amount of your payment to determine which plans will save you money.
Consider shortening your loan period.
If your current mortgage is a 30-year loan, consider shortening it to 20 years or 15 years if you can afford it. This will undoubtedly increase your monthly payments but you'll save more in terms of the total interest payment over the course of the loan period. This is because with shorter-term loan schemes, lenders give you a low mortgage refinance rate. If you can spare the money for the monthly payment, go this route. You'll be free of debt in just a few years.
Be ready for refinancing costs.
A mortgage refinance is merely a brand new load you're taking out. If you're looking for a low mortgage refinance rate, you're likely to encounter costs associated with the loan. Don't let the low refinancing interest rate distract you from other critical components of your loan.
It's highly likely you'll be dealing with fees for cost of survey, appraisal, prepayment, loan origination, points, title search and title insurance and of course, application fees to cover for processing and credit report checks.