Wednesday, May 26, 2010 3:01pm Written by Jaclyn Doelz

Low mortgage rates have prompted most of us to at least think about refinancing our home. Locking in an interest rate below 6 percent could end up saving you big money if interest rates begin to rise in the future. The following tips should help you get the best deal possible if you do decide to refinance.

• Do talk to your own lender first. You may be able to skip some expenses, like an appraisal, if your mortgage is fairly new.
• Do compare fees and closing costs as carefully as interest rate. These can vary widely.
• Do see whether your lender is able to switch your escrow from the old mortgage to the new one, so you don't have to prepay. This isn't common, but it's very handy.
• Do make sure to get the loan you want. There are numerous accounts of borrowers who sign up for a loan guaranteed to lower their payments, only to learn their payments are lower because they do not include taxes and insurance.
• Don't refinance for small gains. Mortgages cost money. It would be counter productive to pay $4,000 in closing costs to lower your payment by $35.
• Don't believe "no closing costs." If they are advertising no closing costs it is likely that they make their profits with higher interest rates.
• Don't dismiss an adjustable rate if you know you'll move -- for example, a 5/1 ARM. Today with good credit and no points, you could lock in a low interest rate for five years. Your rate will move after that, probably up.