Refinancing today is not the same game it was a few years ago, when homeowners with even a modest amount of equity and just so-so credit could score a great loan.

You now need good credit, lots of equity and very little outside debt.

"These are very traditional lending standards, but they're going to come as a shock to anybody who has only been in the market for the past 10 years," said Keith Gumbinger, vice president of HSH Associates, a Pompton Plains, N.J., publisher of loan information.

Homeowners who don't meet those standards might be able to take advantage of a relief program by the Obama administration that allows people with decent credit to refinance even if they have little or no home equity.

But that program is only for those who owe more than 80 percent of what their homes are worth -- and whose loans are small enough to be backed by the government's guarantors, Fannie Mae and Freddie Mac.

How can everyone else get the best mortgage in today's market?

GOOD CREDIT SCORE

Two years ago, you could get a good loan with a credit score of 680, said Jeff Lazerson, president of Mortgage Grader, an online brokerage. Today, you'd better have a score of 700 -- and if you want the best rates, a 740 and above.

The most widely used credit score is called the FICO, based on a model devised by Fair Isaac Corp., which assesses your risk to lenders on a scale of 300 to 850. The higher the score, the lower your loan rate.

Not sure of your credit score? Then it's time to check, said Greg McBride, senior financial analyst for BankRate.com.

Fair Isaac is currently running a promotion for its Score Watch service that allows consumers to get their credit score for free at www.myFICO.com for 30 days. Beware: If you don't cancel before the trial period ends, you will be billed at the annual subscription rate. That costs roughly $90.

If your score is too low to get the best loan rates, consider cleaning up your credit before applying, McBride said. The FICO Web site and credit scoring services provide how-to suggestions.

FINANCIAL RATIOS

Two other numbers are going to have a significant effect on how much you pay for a mortgage: your loan-to-value ratio and your debt-to-income ratio.

Loan-to-value ratio indicates what your house is worth versus the amount you're borrowing. Generally, low rates are reserved for those borrowing less than 80 percent of their home's value. Those borrowing less than 60 percent get the best rate, Lazerson said.

Debt-to-income ratio reflects your financial life and is used to estimate how much you can afford to borrow by comparing your monthly debt payments -- house, car, credit cards, student loans, etc. -- to your gross, or before-tax, income. In years gone by, lenders would allow you to borrow up to 55 percent of your income, Gumbinger said. Today, they're going to want to see you borrowing 43 percent or less, he said.

Watch your loan balance: The lowest rates are reserved for "conforming" loans, which are for $417,000 or less. For those with good credit borrowing no more than that amount, 30-year fixed-rate mortgages cost 4.78 percent on average last week, according to Freddie Mac.

Need more? You'll pay more. But the rate for an "extended conforming" loan of as much as $729,750 isn't substantially higher -- it's roughly 4.875 percent to 5 percent.

If you need a "jumbo" loan, rates are considerably higher, Lazerson said. People in high-cost counties who borrow more than $729,750 are likely to pay 6 percent to 8 percent -- even if their credit is perfect. Continued...