Again this week, mortgage rates hit record lows while refinancing activity spiked. Following the Fed's announcement that they'd be buying up to 300 Billion in Treasury securities followed by more news on the administration's plan to shift toxic assets off the books of the large Financials into other private hands, rates dropped to historically low levels. According to the Mortgage Bankers Association,

Rates on 30 Year conventional mortgages now stand at 4.63%

That's the lowest rate in the history its survey (their data goes back to 1990). The trick is understanding what this 4.63% comes with - fees, points, hassles and more.

Two Easy Steps to Secure the Best Mortgage or Refinance Loan:

1. First, compare, compare, compare. I started off with comparisons from LowerMyBills.

After using sites like this, I was immediately contacted by local lenders with rates and quotes. It was virtually effortless and at least gave me a few baseline comparisons to work from. You can also use their Mortgage Calculator to compare rates and options as well.


Once these rates are in hand, check out other lender rates as well. I've posted some independent reader-generated results HERE. Additionally, there are ads all over the internet for mortgage rates these days. If the application process is simple and they don't ping your credit to get a rough quote, great; just be cognizant of the potential impact of having several outfits ping your credit at the same time.

2. Next, understand your Net Present Value. For instance, how could you possibly discern between multiple options with different fees, points and rates? Here's a screenshot of an analysis I performed and the spreadsheet can be accessed at DarwinsFinance if you want to try it out yourself.

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