Americans are buying homes and refinancing existing mortgage loans in record numbers. With the heavy activity, many are turning to the Internet to shop for and apply for mortgages. While this route may involve fewer hassles, you still need to educate yourself on the process - and protect your privacy and get the best deal you can.

Last year about 25 percent of those who applied for a mortgage used the Internet to search or actually obtain a loan, according to Forrester Research, a firm in Massachusetts. The rate is climbing to close to 1 in 3 this year.

And while the Mortgage Bankers Association of America expects gradual overall mortgage rate increases into 2003, it still expects high volume, in part from 2002 spillover - and the role technology is playing in the mortgage process.

"While technology has helped to limit the incidence of bottlenecking, it is expected that this and low rates will cause spillover of 2002 refinance volume into the first half of 2003," said Doug Duncan, MBA senior vice president and chief economist.

The online mortgage shopping activity is expected to continue to mount.

"I am confident in the numbers continuing to climb, and not level off for some time yet," said Phil Colling, an MBA economist.

As reported earlier this month on Realty Times, an annual survey of more than 600 mortgage companies and 500 consumers, "Myers Annual Internet Mortgage Survey," finds that 76 percent of mortgage shoppers now use the Internet to check rates and research mortgages. And the survey also reveals that 75 percent of consumers are willing to complete the entire mortgage process online once digital signatures become widespread.

So what should you know if you're shopping for a mortgage online? Freddie Mac offers the following tips:

Published: November 5, 2002

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