If you’ve been waiting to see when interest rates will bottom out before buying, you know how difficult that can be. When rates are falling, there’s a temptation to wait for a further decline before buying. But then rates can turn up sharply, and the opportunity may slip away. On the other hand, if you buy and afterward interest rates drop even further you may have an opportunity to refinance. Refinancing is replacing your old mortgage with a new one.

Whether it is the original mortgage or a refinancing, shop carefully for the best mortgage you can. A real estate broker can be helpful, but plan to spend several hours on the phone asking for rates. Some newspapers print mortgage rates offered by local lenders once a week.
That, too, is useful information, but be sure to call and verify. Take out the Yellow Pages and call every lender. Ask for rates, points, and all other costs for the type of loan (e.g., FHA, fixed-rate, ARM) and repayment schedule that you want. More->