While the recent recession has had many different devastating financial ramifications for millions of people, one advantage that it has provided consumers is that it has helped keep key interests rates lower on pretty much everything. This has allowed people to borrower money to purchase a home or refinance an existing mortgage at much lower rates, which has helped to reduce their overall monthly bills by a significant amount of money each month.

While current mortgage interest rates are extremely low, tightened lending requirements have made it more challenging for most people to qualify for the lowest rates. When most people Google mortgage rates, the rates that they are quoted are for people that meet all of the required criteria for the banks. Due to the affects of the recession, which includes reduced income and lower home values, many people that are looking to refinance to take advantage of the low current mortgage interest rates will not qualify for these rates.

One criterion that most lenders require in order to qualify for the lowest rates is a high credit score. During the sub-prime lending era, most lenders were willing to provide mortgages to people that had shaky credit histories. Since those people with low credit scores had an extremely high rate of default, especially compared to those with high credit scores, banks have started avoiding lending to people with low scores. Those that Google mortgage rates, and are hoping to get the best overall rates, should be aware that they will need a score of 740 or better. Those that have a score of between 650 and 739 may still qualify for a loan, but they will likely be charged a higher interest rate.

When lenders are considering applicants for a mortgage refinance, they will also want to see that the borrower has some equity in the home. During the sub-prime lending era, most banks were willing to provide up to 100% financing for a new home purchase or a mortgage refinance. They were willing to do this because it was assumed that housing prices would increase in value. Since most housing markets have fallen apart and the median price has declined considerably, most banks are now dealing with a significant amount of underwater mortgages. To help ensure that they are protected in the event that the home drops in value, most banks now require that their borrowers have at least 10% equity in order to be approved for the mortgage.