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When we bought our house several years ago, mortgage rates had spiked considerably.  In fact, within a month before and a month after we bought, they varied more than one and a half points.  In any case, our interest rate ended up at 6.25% for a 30 year fixed.  At the time, it was pretty good.  Now, its not so great.

Now is the time to refinance or buy a new house.  After the housing bubble burst, house prices dropped considerably.  Now that mortgage rates have fallen as well, if you are in the market for a new house, you’re in luck.  Everywhere you look there are foreclosures and houses for sale and chances are pretty good you will be able to get a good deal.  If you decide to refinance or buy a new house here are a few quick tips to think about:

1. Know your FICO score:
I know I have harped on this in the past, but its important to remember; FICO score = rate you able to get.  Its that simple.  Even if you have a FICO in the low 600s, right now chances are you can still get a rate as low as 5.5% which may be lower than what you have now.

2. Fix any credit glitches on your credit report:
When you look at your credit reports, do not just focus solely on the score. Look also at each line of your report. If you notice any mistakes, errors or glitches, be sure to get them straightened out right away so that they do not affect your chances for getting approved at the lowest rate.

3. Do your homework on your lender
Know the lender and make sure you aren’t paying any more than you have to in points, fees or origination costs.

4. Do your homework on your house
If you are buying a house, make sure to have it thoroughly inspected, independently of the homeowner inspection.  Make sure you understand exactly what you are paying for.  If you are refinancing, its a good time to see what your house is worth.  Has it appreciated?  Has it depreciated?  How much?
Right now, rates are low, even for things like payday loans such as those from www.ppiclaims.uk.com

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