In light of the current economy, many Americans are looking for the best mortgage refinance rates they can find in order to lower their monthly bills. If you are one of them, read on for an overview of the current market conditions and some ways to ensure you find the lowest rates possible.

Current Interest Rate Trends

Recently, mortgage interest rates have gotten quite low and the trend seems to be that they are staying flat. For instance, the 30-year fixed mortgage rates are currently at right around 5 1/4 percent and that has not changed in several weeks. The shorter 15-year fixed rate mortgages are at a great rate of under 5 percent. Homeowners with adjustable rate mortgages, or ARMs, have seen some wonderfully low rates due to a lowered prime. Most ARM rates are at slightly over 5%.

The activity level on mortgage applications has recently seen an upsurge, largely due to the economic stimulus plan and the president’s “Making Home Affordable” package. Refinancing activity has also been strong, while new home loan applications are not experiencing a great amount of increase.

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.

The Lowest Mortgage Refinance Rates

Before you start the process of refinancing, you will find it much easier to get the lowest mortgage refinance rates if you follow these tips.

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.

After you have received your credit report, look it over carefully. Ensure that all the information on it is correct and belongs to you. If you have any bills that have been outstanding for a long time, you may want to pay them off before you apply for a refinance. This will help your credit score rise – and the highest scores get the lowest interest rates.

Be sure to do some research on the current mortgage refinance rates in your locality before you contact a lender to refinance your loan. Once you know what the lowest and highest rates are, you are in a much better position to get the best deal. You can easily find this information online. Remember, though, that the best rates are offered to those who enjoy the lowest debt-to-income ratios and have the most equity in their home.

A refinance is much the same process as when you originally applied for the mortgage. So you will need the same paperwork. This includes proof of income, past tax returns, investment statements, checking and savings account statements, and a list of monthly debt obligations. Have all the necessary paperwork on hand before you visit the lender or apply for the refinance.

Mortgage refinance rates are at some of the lowest levels they have been in many years. This may just be the very best time for you to consider refinancing. Do your research ahead of time and compile your paperwork along with reviewing your credit score. These tips will help you find the lowest interest rate.