One great way to save that we tend to forget as we look for the best interest rates on savings accounts, money market accounts, money market funds and CDs, etc., are the ways we can save money through lowering our cost of living. With that in mind, Wells Fargo (NYSE:WFC) is offering an extremely low mortgage refinance rate of 4.66 percent. This is a 30-year fixed rate.

To understand what that really means, the all-time low, as far as it relates to a weekly average (not a one-day low), that number is 4.61 percent. So Wells Fargo is just over that rate at this time.

All of this is subject to fairly rapid change, but the ballpark figure should remain around these numbers, even when they fluctuate.

With these low mortgage refinance rates being at optimal levels, if you’re in the position to and are thinking in terms of refinancing, you many not get another chance at low interest rates like this for some time.

In order to manage your expectations properly, keep in mind that these rates are offered under the assumption of good credit and the amount of equity you have in your home.

If you’re ok in those areas, the lowest interest rates will be of great benefit to you. But even if you’re not qualified for the absolute best rates, it’s worth checking it out and applying, as the interest rates you would normally get when taking into consideration your credit score and equity in your home should be lower than it would be anyway.

In other words, your situation can’t be changed, and because interest rates are low at this time, if you qualify for a refinance your rates should still be better than you would have received from past period of higher interest rates.

Of course if you have significant equity in your home and a strong credit score, you’ll get the very best refinance interest rates out there to have, and probably the best rates that will be available for years into the future.

Don’t wait for refinance to become popular in order to benefit from these great interest rates for refinancing your mortgage. This is a great personal finance tool to make your cost of living decline, while at the same time freeing up more money to invest if you choose. It doesn’t get much better than that for the average person.

Since most lenders of home loans require at least 20% of the purchase price down before they will consider financing you at a decent rate, it will serve you well to start saving as soon as you know a new home is in your future. Saving has always been a issue for Americans, especially since a lot of the population is living paycheck  to paycheck and just barely getting by on what they make each month. This leaves little room for even a small savings, let alone for a down payment on a home.

A Savings Plan
But, as with much of personal finance, where there is a will there is a way and a bit of planning is all it takes to get started on achieving one large part of the American dream. The first step in your savings plan is deciding how much to save. If you have prequalified for a home loan, you should have a good estimate of what the cost of the home you can afford will be. The 20% rule is generally what is required  by lenders for financing those individuals who have good but not excellent credit scores. Without the 20% down, most lenders will require you to purchase Private Mortgage Insurance (PMI) that protects the lender should you default on your home loan. PMI adds costs to your overall mortgage so it is financially wise to save enough for a down payment and skip the PMI altogether.

Down Payment Math
If you are looking at a home that costs $100,000, you would need to save $20,000 towards a down payment. While $20k may seem like an impossible goal to reach in a reasonable period of time, it will help you to save money in the long-term and have instant equity in your new home. Within your budget you can estimate how much money you can save each week. You may have to cut out luxuries such as cable, internet, or cell phone packages in order to save more money each month. The more cash you can save in the shortest period of time without negatively affecting your other financial obligations, the closer you will be to your dream of owning a home.

Cut Your Budget
If you are unwilling to do more drastic measures as such, it can be a very long savings period to reach your goal. However, there may be additional resource which you can tap into to get the money you need faster. For instance, some retirement accounts  and IRA’s allow you to borrow money from yourself to use for a home purchase. You can also check with the Veteran’s Administration if you are a qualified veteran or the state housing authority to check out programs that help first-time homeowners or those living on low-to-moderate income levels.

Stash Your Cash Wisely
To make savings even more effective, consider stashing your cash into a number of places that will prove profitable, depending on the savings time you have planned out. Instead of allowing your savings to sit and earn a small interest rate at your local bank, consider opening an online savings account that earns more interest or a money market account. By putting your money in an account that earns 5% interest instead of one earning less than 1%, you can make your savings work harder and more efficiently for you and at the same time decrease the time it takes to reach your ultimate savings goal.

We are caught up, as consumers, in finding any way possible to help fit into our budgets. That means that refinancing options are being explored as ways to make this happen. Saving money anywhere possible leaves money available to use in more important places in our budget as well.

So, is it possible to always save money when you refinance your house at a lower rate? It depends.

Lower payments. The goal of a refinance program for borrowers is a lower monthly payment. This is a short-sighted goal. You should not be of a mindset to just fit into a lower payment. You should have as a major goal to pay off your mortgage so that you can one day own the house free and clear. Or, at least pay off enough of the loan so that if you do have to sell, you will have some equity from which you can benefit and use as a down-payment on another house.

Starting over. When you refinance, you start the 30 year process all over again unless you take out a 15 year mortgage and that is not likely since you are trying to save money on a monthly payment. What this means is that if your original mortgage was for 30 years and you have made the payments for five years on that mortgage, you will now be extending that to a 35 year term. This, plus the fact that the amount of interest that you pay is loaded up at the front of the mortgage, means more goes to interest and less to principle.

Fees and costs. Refinancing has its own closing costs and fees, just as you paid when you first bought the home. Get ready to pay these again. Better it would be for you to take that extra money and pay off some smaller, short term debt to give your budget some needed room in which to operate. Do not ignore what can be done by lowering your overall debt load in other ways before considering a refinance.

Avoid the ARM. If you do choose to refinance, be sure to avoid any offers of an Adjustable Rate Mortgage. Attractive because of rates, they can get you in just a few years down the road with higher payments which will put you right back where you were before.

Take a good, hard look at refinancing before you do and make sure it makes financial sense for you. Be better off, not more in debt.

Desperation is where many are finding themselves because of the inability to make their mortgage payments.  This situation is not limited to the USA. Global economic unrest has caused other nations like the UK to hear the cries of those burdened by financial duress as evidenced by this report:  UK Mortgage Crisis

Anyone in this situation around the world would welcome the following advice:

Speak Up.  Initial reaction from one found in this situation often is to retreat and close down all communications.  This is a recipe for disaster.  Should you find yourself in this predicament, your first step towards getting help should be to pick up the phone and make a call.  It should be of comfort knowing that mortgage companies have already anticipated these difficult times and are in position to help.  Losing your home would be the outcome of inaction, but also the mortgage company stands to lose money.  Given this reality, they are more than ready to work with you in order to help you keep your home.

Take Action.  In addition to contacting your mortgage company, you need to institute other activities as well.  Telling your family of the serious situation in which you find yourselves is a first step.  There is no reason to impose emotional stress of the prospect of losing your home into an already volatile financial crisis.  Start the conversation with a frank discussion of the facts and then resolve to work together to prevent the loss of the home.  Part-time work might be needed in order to bring in extra money to meet expenses.  Most of us have extra items lying around the house that can be sold and the cash used towards paying the mortgage and other bills.  Creativity in bringing in extra income will result in surprising gains.

Lower Expenses.  Debt Consolidation programs exist to help you meet your unsecured debt obligations.  Searching out the most reputable company to perform this function can be a chore.  There are many companies who would like to take you as customer, only to deliver on less than they promise.  Care must be taken in choosing such a plan.

Lowering expenses is just a part of an overall effort to bring your income and expenses into balance.  Most households can find unnecessary expenses with little effort.  Look for those which do not affect your ability to survive, but just add to your quality of life.  Things like the cable TV bill or an extra unnecessary cell phone are good places to start your search.  In fact, you will miss these little extras very little while seeing your overall financial picture improve greatly each month.

Taking a realistic view of your finances and making changes to help be able to meet your monthly mortgage payment will pay off if you are diligent.  Nothing replaces hard work and determination and you will be amazed at the amount of results you will begin to see from your efforts.