Dear EchoBay Expert:

Dear Loyal Reader: The best mortgage refinancing company for you depends largely on the type of borrower you are. For all borrowers, an easy place to shop for the best service and lowest rates from mortgage refinancing companies is online.

You can search out hundreds of lenders and get rate and fee comparisons easily. Online companies tend to offer instant approval and lower fees than traditional lenders as their overhead is lower. Banks can also be a great resource if you have excellent credit.

Their rates tend to be a little higher than other lenders but some people are willing to pay more for the face-to-face interaction. Another option is a credit union, which typically offer great rates to their members. If you are a member, be sure to check with them for their rates and fees.

No matter what avenue you choose, be sure that you are dealing directly with the lender. Some appear to be the lender when they are, actually, just a middleman that is farming out your application to other lenders. In this case, you will probably pay more for your loan as the middleman has to get his cut.

Dear EchoBay Expert:

Dear Loyal Reader: There are a few circumstances that could cause you to rethink your desire to pursue home refinancing. The first thing to consider is always whether interest rates have gone up or down, but since you said that you'll be refinancing to take advantage of low interest rates, I'm assuming that's not an issue with your situation.

You'll also want to make sure that your credit hasn't suffered any dings since you first obtained your mortgage loan. Since poor credit can mean higher interest rates, blemishes on your credit report can mean a higher interest rate than what you're currently paying. You will want to make sure that you plan on staying in your home long enough to reach your "breakeven" point.

There are costs associated with home refinancing, and if you won't be sticking around long enough to recoup those costs, it's probably not a good idea for you to refinance right now.

If you're going to be refinancing to combine a first and second mortgage, make sure that the total balance isn't going to bring you past 80 percent of your loan-to-value ratio or you'll wind up paying private mortgage insurance, which can cost you a lot of money in the long run.