How to score a low-rate loan

In this bleak economy and stagnant, scary housing market, good news is harder to find than a zip code where home values are going up.

But if you plan to stay put in your home and have a decent credit score, one bright spot has been that falling interest rates means it’s a great time to refinance your mortgage, a move that could save you hundreds of dollars every month on your mortgage payment and over the long term, thousands of dollars.

Trouble is, like any good deal, not everyone can qualify. And with loads of people rushing to refinance, even homeowners with a decent credit score are finding out that it can take weeks, even months before a mortgage lender can process a refinancing for you. At least one frustrated homeowner in Denver wrote to me to say she had a nearly two-month wait to refinance from 5.875% to 4.875% on a 30-year fixed mortgage. That backlog ended up costing her nearly $1,000 in fees to hold onto the mortgage rate she and her husband thought they had secured with a 30-day lock back in mid-December.

So, what can you do to make sure you don’t miss out on your refinancing opportunity? First, know whether you can even qualify. Underwriting standards are super strict today, so you must have 20% to 25% equity in your home, a credit score of at least 750 and don’t own a slew of investments properties to qualify for the best rates. Don’t get stuck paying for an appraisal and loan fees only to find out you aren’t eligible. According to Guy Cecala, publisher of Inside Mortgage Finance newsletter, transaction fees and points have come back in a big way, so you really need to shop around get the best deal. He suggests getting at least three quotes and running the numbers to make sure the cost of refinancing will pay off for you. Try a calculator like this one at CNNMoney.com. A general rule of thumb is that you need to cover all your closing costs with the savings from your refi within two years.

Start with your existing lender but call all the major institutions in your area as well as small mortgage brokers to weigh bids. Unfortunately, lenders are in the driver’s seat these days. But if you belong to a credit union that does mortgage loans, that could be the best option of all. Cecala says he knows two lawyers who recently were able to refinance their mortgages with their credit unions, snagging favorable rates and paying no junk transaction fees or points. It’s just another reason to love credit unions.

Ford: Electric van in 2010

Ford Motor Co. will introduce its first all-electric vehicle in 2010, but it will be intended for business owners - not families. The electric Transit Connect, a small van, will be offered in "select" U.S. Ford dealerships.

"The new Transit Connect light commercial vehicle with battery electric power represents the next logical step in our pursuit of even greater fuel economy and sustainability," said Derrick Kuzak, Ford's group vice president for global product development in a company announcement.

The van will able to to travel about 100 miles on a fully charged battery, according to Ford.

The introduction is part of a longer term electric-vehicle strategy that Ford announced at the Detroit Auto Show in January.

The plan also calls for a battery-powered small car in 2011 and "advanced hybrid" and plug-in hybrid vehicles in 2012.

Non-electric Transit Connect vans will go on sale in the U.S. later this year as 2010 model year vehicles. Ford (F, Fortune 500) is marketing the van, which is powered by a 2.0-liter four-cylinder engine, as a more fuel-efficient and space-efficient alternative to larger work vehicles, such as ford's own E-series vans.

The Transit Connect has been sold in Europe since 2003, but this will be the first time the van is available in the U.S. Ford made some cosmetic changes to the van for its American introduction.

To create the electric Transit Connect, Ford is working with British firm Smith Electric Vehicles, which modifies existing commercial vehicles to use electric power. Smith already offers its customers electric versions of the Transit Connect.

Several other carmakers will also be introducing plug-in vehicles next year. General Motors (GM, Fortune 500) plans to sell its "range extended" electric car, the Chevrolet Volt, which will run on batteries but also have a small gasoline engine to generate electricity for longer range. Chrysler plans to sell a similar vehicle as well.

Toyota (TM) has also announced plans for a test fleet of plug-in Prius hybrids later this year, and Nissan (NSANY) plans to introduce an electric-only "city car" in 2010.