Mortgage loan refinance rate is the interest rate at which refinance loan is obtained for paying off earlier mortgage loan.In fact, mortgage loan refinance rate is the most important factor that has to be looked for while getting mortgage refinance loan. Maximum benefits are obtained by means of mortgage refinance loan only when refinance rate is lowest. When mortgage interest rates are falling continuously in countries like United States, it really makes sense to refinance the earlier mortgage loan at lower rate.
Many institutions like mortgage centers, banks, mortgage lenders etc provide refinance loans. With sub prime lending hitting the U.S mortgage market deeply, low rate mortgage refinance loans are available to people with good credit only in present times.Otherwise also, credit rating of a person plays a very important role in determining the rate of refinance of mortgage loan. Down payment is another factor that can affect the refinance loan interest rate. If a person is able to make down payment up to 20%, he can easily get a low rate refinance loan.
Many mortgage experts feel that single factor that should be looked for getting refinance loan is the refinance rate. Since interest rates fluctuate and differ from one financial institution to another, a person should search extensively for the low refinance rate. Prevailing mortgage and refinance rates becomes low whenever Federal Reserve in United States enters a rate cutting period. In the past few months, Federal Reserve has cut interest rates on many occasions and this has made refinance a profitable opportunity for people having good credit reports. Shortening of repayment period by means of refinance loan also allow a person in lowering interest rates.For example, if earlier mortgage loan was obtained for period of 20 years and if any person obtains mortgage refinance loan for a period of 10 years after original mortgage loan has run for 5 ears, he would definitely be able to get refinance loan at lower rates.
However, monthly installment amount increases with decrease in repayment period. For saving considerable amount of interest, shortening of repayment period is one of best solutions available. If refinance mortgage loan is available at extremely lower rates and a person wishes to remain in same home for next many years, it is better to get such loan at fixed interest rates. Otherwise, ARM or adjustable rate mortgage is considered as better solution.
Finding low mortgage loan refinance rates is not a problem. There are many online sources that can help a person out. For example, Mortgage Loan is one such web site. A person can easily find low rate refinance loan here. Currently, national mortgage refinance rate for a 30 year fixed loan is 5.42%. Similarly, for a fixed 15 year mortgage refinance loans, interest rate is 4.86%. 3/1 ARM refinance mortgage loan is available at a rate of 5.37% whereas 5/1 ARM refinance mortgage loan is provided at 5.56%. A 30- year fixed Jumbo refinance loan attracts an interest rate of 6.78%.