As I write this interest rates on a 30 year fixed mortgage for people with good to excellent credit has remained stable at just around 5%. That is pretty cheap money when looked at from an historical perspective. Rates for a 15 year fixed mortgages are lower yet, but of course you’ll pay more on a monthly basis because it is a shorter term loan.

The prime rate is the controlling factor. It is the lending rate that is set by the Federal Reserve Bank and is the very lowest rate available. It is used by banks to lend and borrow money from each other. It facilitates the flow of money which in turn greases the wheels of our economy.

Because the best refinance rates are available now there has been a predictable upsurge in mortgage applications recently despite the poor economy. Or perhaps in part it is because of the poor economy. What I mean by that is that while unemployment rises many people are now finding themselves with mortgages that they can no longer afford. In many cases they are attempting to refinance mortgages so that they can make their monthly payments just to stay in their homes.

Of course the Democratic controlled Congress, and leadership of President Obama has seen fit to authorize billions of dollars in stimulus money to banks and financial institutions so that they may lend money to homeowners in the form of home mortgages and refinances. They are attempting to bolster the sagging housing market which will in turn help the economy to recover.

It looks as if, although no one knows for sure, that the housing market may have bottomed out. That means that when it begins to recover interest rates will no doubt rise as well. With this in mind, and let it be known that we have no way of knowing for sure, we may just be seeing the best refinance rates right now.

In order to get the best rate you possibly can you are going to want to get a copy of your credit report and credit score to check over them to see if there are any inaccuracies that may be lowering your score. This is important because the higher your credit score is, the lower the interest rates you will get.

If you do discover errors or unfamiliar activity then you must contact the three credit agencies Experian, Equifax, and TransUnion immediately before you apply to refinance your loan. While this can be a tedious endeavor, it is well worth it because you could end up saving yourself thousands and thousands of dollars.

You’ll also want to compare the current rates being offered through banks and financial institutions. Do not be fooled if you see low interest rates offered through one lendor that seem substantially lower than the others. More than likely this will signal that there are some pretty substantial fees that would accompany that loan so be sure to watch out for fees as well.

After all, getting the best refinance rates won’t do you a whole lot of good if the money you save refinancing has been wiped out by expensive fees.