Refinancing your mortgage rate is an enticing idea, as by lowering the interest you are paying you can save yourself a lot of money in the long run. If you plan on staying in your current residence for many years to come and don’t plan on moving, then the fees it costs to refinance will be counterbalanced by a lower interest rate in about 3 to 5 years’ time. While it is a bit more difficult to refinance in today’s poor economy, it is still possible to do so. First, you need to take a look at your own payment history. You are more apt to get a lower interest rate if you have paid all of your previous bills on time for the past year. Another point that can give you an edge and the best possible options is if you have accumulated at least 5 to 10 percent equity.

Next, figure out how much your house is worth before you begin to seek out possible lenders. You can do a lot of this online and there are plenty of sites that help you estimate your house’s worth, such as Realtor.com. Next, find the latest market information and a great place to find that is online, as there are sites that will even help you to find the sums of your different possibilities. You can visit a site like, Bankrate.com for just that. Once you have done the math and calculated that your own current rate isn’t already working better for you then you can seek out possible lenders. Depending on the times, you need to be certain that refinancing is the better deal for you and over the years you will be paying less.

Meet with the company you are currently working with and see what your situation with them is and then decide with whom you would like to do business with. Seek out your current bank’s loan officer and determine if they are willing to rework with you. Generally banks that have built a relationship with you will want to keep you on as a customer. Being that many larger banks are faring worse due to the economy than smaller or newer ones, you may want to visit one of the smaller ones. There are also online options that you can apply for directly from your computer as well as phoning some other companies. Check out what your options are and then bear in mind that you want to aim to get your new interest rate at least 2% less than what you are paying now.

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