Wouldn't it be nice if we could just get out our magic ball and see when mortgage rates were going to fall? Unfortunately, the technology to do that just hasn't been developed yet, so in the meantime we have to rely on doing our homework to get the best mortgage deal possible and lock in rates that don't leave us wishing we had acted sooner. So even though we don't have a magic ball, there is ways to keep your mortgage rates down and take advantage of the market.

First, don't get greedy. Mortgage rates fluctuate, often day by day. When you are thinking about refinancing or taking out a new mortgage new keep an eye on the market and know where things are headed. When you see a low rate, lock it in and don't hold out thinking that "if I can just wait one more day?". Often that day never comes and you are left with a rate than can be as much as a full percentage point higher! The golden rule: don't be greedy!

Next, crack open that nest egg that you've had set aside for a rainy day and buy into the equity in your home. The more you put towards the down payment, or into your equity, the lower your rate will be and (as an added benefit) the less you will pay in interest over the years no matter what your rate is. One of the single best things you can do to save money in the long run when it comes to your mortgage is to get your equity built up in the beginning. Don't strain yourself financially, but don't keep your piggy bank tucked away for a rainy day - because you can buy a lot of umbrellas with the money you are going to save!

Negotiate, negotiate, negotiate. A lot of people think that when they sign their mortgage notes that what is written down is set in stone. Mortgages are just like buying a car - you have plenty of room to negotiate on rates, fees and other costs. Shop around and play hardball - after all, it is your money we are talking about here!

Take advantage of the buyer's market out there and ask your seller to pony up some of the closing, inspection and other costs. Some seller's will even purchase points for you - and it never hurts to ask. Whenever there is a glut of housing on the market a savvy buyer can take advantage of it by getting a lot of the costs taken care of by the seller, thus leaving him or her with more money to throw towards the down payment! Another win-win situation!

Finally, know when to hold 'em and know when to fold 'em. Once you get a good rate with minimal fees, lock it in and forget about it. Sure, you could have saved another $100, but in the meantime interest rates went up 0.25% -- So much for that $100 savings!

So put away the magic ball and instead work on your negotiating and financial skills. You may find that you don't need a magic ball after all, you just need a bit of mortgage know-how to get a rate and a note that you can benefit from for years to come.