I refinanced my house nearly 6 months ago...very excited at how much I was able to reduce my payments.  Now, I'm kicking myself because I did not get the lowest possible rate...the rate available today!

If you missed the refinance boom of November, 2009, you can now take advantage of the lowest rates in the past 40 years.  How do you decide if you should make this move?

Typically experts say that you need to look at what the percentage interest rate will adjust to, preferably at least one percent below your current interest rate.  Secondly, you need to consider how long you expect to stay in your current home.  Usually, if you stay at least 2 years, you will come out ahead in the process (because you need to look at the amount saved compared to the closing costs.

What should you expect in refinancing today?  Yes, loans are harder to get today.  Banks are investigating your finances to the finest detail. Rates will be dependent upon your credit score.  The type of rate you would have gotten in 2007 with a 640 credit score, now requires a 740 credit score.  As a result, plan on the process taking 5-8 weeks.

Appraisals are sometimes a surprise.  You need to look carefully at how much equity you have in your home.  If you did a 100% loan in 2007, you probably do not have enough equity built up to get a loan today.  For most of us, even though we know that the news is that prices have gone down, we tend to not think that our personal house's price has gone down.

Consider you debt.  No matter what, it is important to look at our total debt in making credit decisions.  Most lenders do not want you to have a home loan that is higher than 25% of your income.

Compare lender's closing costs as well as interest rate offered.  There are wide variations in closing costs from one lender to another.  Check it out before you actually decide on your lender.

Good luck...I hope you can save 100's of dollars!