Shop around and compare

Make sure you have done enough looking around that you are familiar with the types of available rates. You can use websites like Bankrate.com to help you check weekly mortgage rates. The website provides the National Overnight Averages on their mortgage page. You will also want to check the Mortgage Rate Trend Index that is released on Thursdays.

Bankrate.com also offers analysis along with the actual rates and this information can be valuable when studying rate trends.

Check your local newspapers and news websites for information on local rates. In addition, ask people in your local network - family, friends, neighbors, co-workers and the like - for any help that they may be able to provide.

You should look to see if you are eligible for government mortgage assistance programs like Veterans Loans or Rural American Housing Assistance. You can find useful information on these programs at the following Federal website: http://www.usa.gov/shopping/realestate/mortgages/mortgages.shtml.

Research trends

If you are not in any hurry to buy or refinance your home, you may want to study the current trends in mortgage interest rates. As with any investment, it can pay to be able to predict the future accurately.

If rates are trending sharply downward, for example, you may want to wait a bit before obtaining a mortgage or refinance loan. On the other hand, if rates appear to be going up, you may want to lock in the current low interest rates before they go higher.

Google and other search engines allow you to look for recent news articles on any subject. Many websites specialize in subjects like mortgages providing useful and free information. In addition, many of these sites have discussion forums and blogs that allow you to gain from other participants' experience.

Of course, predicting future trends is not an exact science. In fact, it basically involves making an educated guess about the future direction of rates. However, there are times when rate trends are very obvious, and you could benefit by having an awareness of these movements and acting appropriately.

Lower your debt load

Lenders look at your current debt obligations to determine how much risk you pose as a customer. To lessen your risk profile, you can pay off as much of your debt as possible before applying for a loan.

Clean up your credit record

The major credit reporting agencies - Equifax, Experian, and TransUnion - are required by law to provide you with a free copy of your report once every 12 months upon request. All three agencies have a central website -- annualcreditreport.com - and a central toll free number: 1-877-322-8228.

Order your report and go over all the details carefully. If you find any errors, you can notify the agency involved and they are required by law to investigate the problems promptly and to correct any mistakes.

If you have negative information on your report, it will have an expiry date after which the information must be removed from your record. Most negative information expires after seven years while bankruptcies expire after 10 years. If you are near the expiry date of any negative marks, it may pay to wait for this date before applying for a loan.

Read the fine print

Look for any hidden costs such as closing costs and origination fees when comparing mortgage and refinancing offers.

In addition, make sure you know the difference between the different types of interest rates and financing plans. If you have any doubts, ask the broker or lender to clarify the matter. Use a refinance calculator to determine what savings can obtain from a refinancing loan.

Bargain for lower rates

Many people are unaware that they can negotiate with lenders for lower interest rates. Like car dealers, mortgage brokers often have some leeway in the rates and fees that they can charge. You can use this to your own advantage.

Always inform different lenders of your current lowest rate offer to see if they are willing to beat that price. While many people may feel uncomfortable with this type of bargaining, you can often get a great deal by negotiating. The brokers tend to be accustomed to this type of haggling and should not take it personally.

Cash out refinance rates

With cash out refinance, you get a new loan type for more that what you currently owe along with new loan terms and interest rates. Because the loan is for more than your current debt, you get extra cash with the new loan that is typically used for home improvement or for other expenditures. The interest rates on the new loan are typically lower than your existing rates.

In some cases, cash out refinance loans pay the extra cash directly to creditors or require proof of improvements to your home. You will need to calculate whether the new interest rates, cancelled debt, added home value, etc. make it worth taking on a larger loan.

Another option for those who have sufficient funds is to buy down one's mortgage rates. Often you can lower interest rates by reducing your principle. Basically, this option involves investing in the equity of your home.

Watch interest rates for refinancing opportunities

Regularly check on the current interest rates to see if you can benefit from home refinancing. Remember to use a refinancing calculator to ensure that after all the costs are included, you will still save money.

Many homeowners refinance their property multiple times whenever the rates will allow them to save money. While this approach may require a little vigilance and work, the savings can often be quite significant.

Conclusion

While getting the lowest mortgage and refinancing rates requires some research and attention to detail, the benefits make it well worth the effort. Fortunately, the Internet makes the task much easier than it was before.

Websites like Bankrate.com and the government's mortgage assistance site make it easier to search for and browse through relevant information. In addition, it is easier to find mortgage brokers using major search engines like Google, Yahoo and Bing.

To get the best rates, you should be willing to negotiate with brokers, so that they are all working to provide you with the best deal. Only work with brokers that are very clear about what they are providing and that are always willing to answer all your questions.

If a broker seems to be pushing you into a deal or is unwilling to clarify any matters, then it is better to take your business elsewhere.