There are many different reasons and options that are available to you should you decide to refinance. There are a few things that can make refinancing a home mortgage more successful. These things include, maintaining a good credit history, having enough equity, and to keep your mortgage payments current. These are some key factors that we will talk about that will help you refinance into a better mortgage and save hundreds per month.

Make sure you have enough equity.
The first thing you should look into when considering refinancing is to make sure you know what the equity currently is in your home. This will give you a rough idea of how much you can borrow against when you refinance the mortgage. This amount is figured out by how much you have already paid on the loan, how long you have owned the property, and how long you plan on living in the home. Finding out that you do not have enough equity in your home, this is a good thing. If you have troubles finding out how much equity you have, a mortgage lender will usually always help you figure out the acutal amount of equity that you have.

Keep your mortgage payments up to date.
A mortgage lender is much more likely to work with you and give you a better term if you have a good history of paying your mortgage on time. The more mortgage payments you have paid on time, or even early, is a big plus sign for the lenders. In their eyes you are more likely to continue paying on time, especially if the mortgage rate is lowered, which is a very good possibility.

Maintain or better your credit rating.
Lenders do not look at only the equity you have available in your property. They will also check into your bank accounts, and credit history and score. Negative credit reports coupled with a mortgage payment, is a warning sign for lenders. This will raise red flags, and then all kinds of verification will need to happen for the refinance to get approved. Maintain your credit, better yet, work on increasing your credit worthiness.

Currently, mortgage rates across the country are at all time lows. A home mortgage refinance is not the answer for everyone, however there are around 1 million homeowners who could really benefit from one. Ask plenty of questions when you meet your potential lenders. You should not have a question that they will not be able to help you with, if they cant answer a question you have, leave them. Once you get a quoted mortgage rate in paper, shop that rate around to other lenders. They can possibly match the offer, or better it.

-M Petrone

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