Best Refinance Home Mortgage Loan Rate

What people need to understand about refinancing rates is that they vary depending upon requirements of the borrower and stipulations by the lender. There are many things that go into creating a refinancing rate; loans are highly individualized for each consumer. There is no blanket loan, and there is no blanket best mortgage interest rate.

The best refinance home mortgage loan rate in the eyes of the borrower is the one that best meets the needs of the borrower. The best refinance mortgage rate in the eyes of the lender is the one that makes a profit and that satisfies the borrower. Today’s refinancing mortgage loan rates are just a little lower than the interest rates for first mortgages.

Regular mortgage rates for the average borrower with good to excellent credit are very low this week (May 7, 2010) at 4.625% for 30 year fixed rate loans; 4.29% for 15 year fixed rate loans; 3.67% for 5/1 ARM (adjustable rate mortgage) loans, and 5.05% for refinancing rates, according to Bankrate.com. All of these rates are down about a tenth of a percent from last week. Rates in general are about as low as they can go, because they are tied into the federal discount rate and that is currently 0.75%.

Economic conditions around the world affect the refinance home mortgage loan rate. Trouble with the Greek economy, a drop in the U.S. Stock Market prices, the Gulf Oil spill and other factors make the rates rise and fall. Right now they are very low, so it is a prime time for borrowers to consider doing a home mortgage refinance if they have a high interest fixed or ARM loan.

The rate a person actually pays for their refinance loan varies with the amount of fees that are charged to create the loan and other fees. It is important to amortize the loan out over time to see if it really will save money in the long run. If the best refinance mortgage rate is 1% to 2% lower than an existing mortgage loan rate, it is most likely going to save the borrower money.

Refinancing can extend or shorten the time a home owner has to pay on their mortgage. It can free up money for other purposes like bill consolidation or making an investment somewhere else. It can lower monthly payments over a long time or keep them about the same for a shorter time period if the rate is lower on the refinance loan.

Having a good income, a steady personal history of employment and residence, and having a good credit record history all will play a part in being able to refinance at the best refinance home mortgage loan rate. It is never too late to improve and clean up your credit record in advance of trying to obtain a refinancing loan.

To get the best rate, determine your personal needs and do research several places to find the optimum interest rates available. It is well worth the time!