Refinancing your existing mortgages has many advantages like lowering the monthly payments or interest rates paid. The latter is in fact one of the most important reasons for opting for refinance. Thus a vital point to be considered while taking a mortgage refinance is mortgage refinance rates. Mortgage refinance rates depend upon various market factors as well as your personal factors as a borrower. But mortgage refinance rates mainly depend upon the interest accrued on the refinance loan. The mortgage refinance rate is expressed as the Annual Percentage Rate (APR). APR is the total amount of money repayable by the borrower to the lender on a loan, per annum.

The different kind of mortgage refinance options available can be broadly classified on the basis of: -Fixed mortgage refinance rate: Various fixed rate refinance include 30 year fixed mortgage refinance, 20 year fixed mortgage refinance, 15 year fixed mortgage and 10 year mortgage refinance, etc.

Getting a mortgage loan is not something you can take out, bring home and then forget about. It does have its risks. To really maximize the kind of deal you get over the long term, you will have to watch out for fluctuations in mortgage loan rates, which, fortunately or unfortunately, change incrementally day by day. Sometimes , It might even happen several fluctuation in one day. Here's some consideration when comparing mortgage refinance rates.

Provide your credit report
You could always get mortgage rate quotes, even without a credit report. However, to get the exact loan rate accurately , your lender will ask you to provide your credit report. If you want the exact figures, get a copy of your report first before you start shopping for mortgage refinance rates .

Ensure all fees included
Getting a mortgage loan refinanced means you will have to pay for certain fees. If you're dealing with a reliable lender, they will be willing to give you all the information you need. Others, unfortunately, will simply withhold that information.

Check how often the lender make loan recalculations
The best way to treat a mortgage loan – or any loan for that matter – is to get out of it as fast as you can. This is why it's always a good decision to have a personal payment plan set up before you take out a loan. A bi-monthly payment scheme, for example, will help you pay off the loan earlier and avoid additional charges.

Check with your lender to determine how often they make loan recalculations. Yearly recalculations are disadvantageous to you, so when comparing mortgage refinance rates, look for companies that recalculate frequently – daily if you can find them or at the very least, monthly.

Why is this important? In the future, you could have the opportunity to get a good amount of cash from a bonus or a promotion and would like to use that to pay off your loan. If your lender does not recalculate often, you could be stuck on the old interest rates, regardless of how much money you put in. If your lender recalculates often, you could start paying for your loan at newer, lower interest rates.

Take advantage of lock-in period
Take advantage of a good mortgage refinance rate by having it locked in by your lender. A lock period is the period of time in which the current or agreed-upon rate is honored by the lender. It means, the rate will stay that way within a specific amount of time. This can range from a minimum of 15 days to a maximum of 60 days.
The lock-in period you choose will of course depend on how long you want to keep the interest rate and on how much you can afford to pay. Shorter lock periods will have more affordable mortgage rates while longer periods will charge higher rates. When comparing mortgage refinance rates, try to compare the lock-in periods as well.