There's no time like the present for qualifying homeowners to apply for mortgage refinancing. Prevailing mortgage interest rates are at an all-time low thanks to the Federal Reserve, which began purchasing $1.25 trillion worth of mortgage-backed securities when the current economic downturn started. Though the Fed's buy back program ended in April 2010, the program's repercussions are still being felt. Financial institutions, though, are pickier than ever about whom they loan money to so homeowners interested in refinancing their loans need to enter the negotiation with a firm strategy in place. Here are some tips:

Be Prepared: Go into the initial loan meeting with proof of a strong credit history, measurable home equity and those bank stubs and tax returns that can document the information requested on the mortgage refinancing application.

Be Patient: Even for homeowners with excellent credit and credentials, the refinancing process these days is a very long and tedious affair. Mortgage brokers are making a list and checking it twice. The processing time for refinancing fixed mortgage rates can frequently be in excess of 45 days, so don't lock in a rate that may expire before the loan is ready to be funded.

Consider a No-Fee Loan: For cash-strapped homeowners seeking refinancing, a no-fee loan may be just the thing. True, no-fee loans generally carry higher interest rates, but those right now rates may be lower than what the homeowner is carrying on his or her current loan. Additionally, a no-fee loan has no upfront closing costs.

Do the Math: Closing costs can add up. Homeowners won't actually save money refinancing fixed mortgage rates unless they take closing costs into consideration. Never sit down with a prospective mortgage lender without calculating the refinance break even point beforehand. If a homeowner can achieve a $100 a month savings by refinancing, but incurs $1,000 a month in closing costs, it will be 10 months before he or she sees any real savings from refinancing the loan. Is mortgage refinancing worth it? That answer will vary from homeowner to homeowner.

Consider Extended Amortization: An alternative to refinancing a loan is extended amortization, in which the current holder of the homeowner's loan agrees to extend the term over which the loan needs to be repaid, lowering the monthly rate in the process. This is an excellent option for homeowners with a good credit history.