BOSTON ( MainStreet) -- Fears of a "double-dip" recession and the possibility of a widening European debt crisis have lowered U.S. mortgage rates to levels not seen in more than half a century.
Thirty-year fixed-rate mortgages fell to 4.15% on average during the week ending Aug. 18 -- the lowest level in more than five decades, according to home-loan giant Freddie Mac.
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| Using industry websites and downloadable calculators is one way to make refinancing a mortgage easier. |
Although rates have rebounded a bit since then to average around 4.22%, experts say it's still a great time for qualified homeowners to refinance.
"Record-low rates mean lots and lots of people could realize substantial savings by refinancing," says Erin Lantz, director of real estate site Zillow.com's Mortgage Marketplace. "That's not the case for every single homeowner, but I'd still encourage consumers to take the time now and look into refinancing."
True, banks have tightened lending standards since the U.S. housing boom's easy-credit days, when it seemed like anyone could get approved for anything.
But Lantz says a little bit of calling around should turn up a lender who'll OK your application, especially if you have at least 20% equity in your home and a 740 credit score or better.
"There's a good chance that there's a way out there for many homeowners to qualify for today's record-low rates," she says.
Here are five things Lantz says homeowners looking to refinance at today's low rates should always do:
Tip No. 1: Shop around. Mortgage rates vary widely these days, so experts recommend doing lots of research before settling on a deal.
"We're seeing an increase
in pricing disparity between lenders, which means it's more important than ever to shop around for your loan," says Mona Marimow of mortgage website LendingTree.com. "Rates can vary by 1% or more from lender to lender, translating into a difference of about $140 per month on a $250,000 loan."
Lantz adds that consumers should look at more than just rates.
"Fees and the quality of service that you'll receive from different lenders vary, too," she says. "So, you should always do your research -- reading reviews and comparing rates and fees in advance so you're ready to lock in when rates hit the level you're looking for."
Popular Web sites for mortgage information include
Zillow,
LendingTree and
Bankrate.com. You should also check with banks in your area, as well as ask friends and relatives where they got their mortgages and whether they'd recommend using their lender.
