The stock market has lost over 500 points recently and is down almost 5% for the year. This has been very influential in driving the yield on the ten year bond down to its lowest level in the past four years touching as low as 3.63% on its yield. Many investors have begun to pull money out of the stock market and look for safer places to invest this money such as gold, money market accounts and bonds. This trend is pushing down the bond yield and results in mortgage rates trending down as well. So if you are lucky and may have equity in your home, it is possible to explore refinancing into a fixed rate mortgage and locking into a rate in the low 5% range.

There are some simple things you can do if you are shopping for a refinance mortgage to help ensure that you receive the best offer. There are thousands of mortgage banks to choose from when it comes to obtaining a new mortgage, but how do you figure out which one to work with and if you are going to get a good deal for your situation.

First, you need to asses your situation, write down your goals, keep in mind if you are trying to consolidate debt, pay off a first and second mortgage or simply trying to lower your interest rate this can greatly impact the type of loan you may qualify for and the loan interest rates and fees associated with the mortgage. For most consumers, the next step is to contact a few companies and banks to find out if they offer programs that meet your goals and if you qualify.

If you have a unique situation such a blemished credit or a loan size over $417,000 you situation may require a bit more involved search to find a lender that can help you out. It may be beneficial to inquire about a government insured fha mortgage loan if you have some credit issues. If you are looking to refinance a jumbo loan, then you should concentrate your search on banks that portfolio their loans (don't sell their loans on the open market) as they will probably be able to offer you the most competitive pricing as the market for jumbo financing is very soft with lenders feeling pressure from the secondary market credit crunch.

The most important thing you can do as a consumer is shop around, take good notes and be realistic with your goals. Once you decide to move forward, make sure you receive everything in writing and be certain you understand what value your home needs to appraise for in order to keep your original agreed upon loan term.