At the end of October, the fed funds dropped from 1.5% to 1% at the late of October by the fed cut. We have not seen a lower rate since year 2003. in the previous two weeks, rates have been fluctuated with the result of news in our economy. Every fixed rates and 1-year arms as well as the 5-year arms have move from 31 points to 13 points. There is definitely one thing you should remember when looking into the numbers when rates are drop and real estate collapsed.In this point, the 5-year and 1-year arms are something you have to get away from. The disparity for the 5-year arm is just like what you would defraying for a fixed rate of 30 years payment period. Then if the rates continue dropping even lower according to what we observe, then at that lower rates you frequently able to refinance. In the first impression the 1-year arm can seem very promising, but anyway, if there is increment in the rates, you will have the necessity of paying a bigger defrayment, with the last choice of doing more refinancing.3 Things You Must FollowResearchThe better you understand, the more eminent you will be. Before you start the process of refinancing, do a research on mortgage lenders. You have to take into account of conducting online research, asking family or friends, or contacting and proposing questions. Then if they think they are going to get your business, they will be willing to help you understand.Find out what the latest rates areFind out what the latest interest rate you are defraying on your mortgage and what the moving rate is, so you can make certain for yourself what would be important for the pocketbook you have. Examine the mortgage terms. There cab be a dissidence of as low as $50.00 to cut from a 30-year fixed to a 15-year fixed rate.Make It ReadyBy the time you meet the lender to begin the process, make every information available as possible as you can. Grabb all this documents with you, from existing mortgage, as well the paperwork handed over to you from your first loan. This could give the lender and you an excellent idea of what could be most important for you. Bring along the tax return and the bank statements as well. This can make the process of the refinancing become faster and finer start.