"There have been waves of refinancing since spring as the rates stayed near 7 percent," says Tom Marder at Fannie Mae, "but we

believe there are still many people out there who might find significant savings if they refinanced their mortgages now."

But is now the optimal time, or might mortgage rates drop yet a bit more? Late last week the trend was slightly down from last Monday's surveyed rates, but by tomorrow they could just as well move back up, the lenders say.

At the National Association of Realtors, chief economist John Tuccillo believes 1994 rates will be in the 6.3 to 7.3 percent range most of the year, numbers that sound plausible, if a little low, to many area lenders.

But rather than considering precise numbers, a consumer has to put each mortgage into perspective.

One lender's 7 percent mortgage with a 2 point (percent) loan fee is not that different from another's 7.5 percent mortgage with no points.

On a $100,000 mortgage, the 7 percent loan would cost $2,000 in points plus miscellaneous closing costs of about $1,400 for title insurance, appraisal, credit report, escrow and other fees.

Monthly payments would be about $665 for principal and interest.

The 7.5 percent mortgage would have closing costs of about $3,400 that would be spred over the life of the loan. Lindberg, who is also president of Lenders Mortgage in Tacoma, says that loan would cost about $699 a month. "After 100 months - 8 1/4 years - the extra $34 you'd pay a month would pay off the fees you would have paid up front. Only then do you start paying more for that mortgage than you would have for the 7 percenter."

Watch extra costs

More important than small differences in interest rates are the additional costs you'll pay, and the lender you'll be dealing with, the lenders stress.

"Everybody is always hoping for the cheapest mortgage, but a quarter-point up or down really doesn't make that much difference over the life of a loan," says Steve Altchech, retail manager at Action Mortgage in Bellevue. "A quarter-point on a $110,000 loan is about $18 a month difference on your mortgage payment.

"When I began in the business eight years ago, mortgages were 11 percent and rising. I tell people, rates are so low today, you can't make a bad decision in today's mortgage market - unless you get a bad mortgage," Altchech said.

A bad mortgage can be one that ends up costing you far more than a preliminary perusal of rates would indicate, or one that is poorly serviced, making your dealings with the lender difficult to impossible.

Compare the products

Most reputable lenders charge similar rates for similar products, says Marder at Fannie Mae. "They're getting their money from similar places. Half of all the mortgage money sold for loans up to $203,150 comes from us. Another quarter comes from the Federal Home Loan Mortgage Corp. (Freddie Mac). The differences in pricing out there are the marketplace."

The bottom line

So how do you judge?

As you make what may be the largest purchase of your life, you should do as much investigating into your loan as you do into the house you're buying.

Consider the reputation of the company you'll be dealing with, what it is promising and what its legally required good-faith estimate really provides for, and don't be afraid to ask for references of satisfied customers and other businesses it deals with regularly.

"A few companies are trying to look good and advertising rates they may never be able to deliver," says Joe Petrotta, vice president and manager of the Seattle branch of Continental Mortgage. "It's really buyer beware.

"If I were a consumer today, I'd look for the reputation of the company I'd be dealing with. Can they deliver on the rate they promise? Are they offering a 10-day lock that can't possibly be met?

"Where do they do their loan servicing, locally or from a long-distance number that's always busy?"

And very important, how will you be treated as the customer?

"There are tons of companies out there," says Petrotta. "Most of them can deliver similar products (mortgages) to you. The bottom line has to be, who do you trust?"