Especially lately, information about mortgage refinancing is heard everywhere. Mortgage rates are at a near all time low across the country and look to stay pretty much the same throughout 2009. A lot of homeowners stand to save hundreds per month, or thousands over the course of the mortgage, by taking advantage of these record low rates. As long as you make smart financial decisions and do not get too risky, there is never a bad reason to refinance a home mortgage loan.

Generally, the most popular reason to refinance is to change your existing rate into a new rate which is lower. Even refinancing into a loan that is just 1% (Ideally more) lower can save you a lot of money. Another popular reason is to get out of an ARM loan (adjustable rate mortgage) and into a more stable fixed rate mortgage. As I said with mortgage rates at near or all time lows all over the country, it is very probable that you will save a sizable amount of money you saved from not paying unnecessary interest rates.

A home loan refinance is also done to free up extra cash from the equity in your home to make a sizable purchase or expense. A home equity loan however is typically an adjustable type of loan, which many people should be wary of. However, it is possible to refinance into say a longer term mortgage, and walk out of the refinance with the difference in cash, in your pocket. You should use any money gotten from a refinance to pay off other debts or things with interest payments. This will save you additional money every month while rebuilding your credit. You can use the money for whatever you wish, it is just recommended to use the money in a financially wise way.

There are some homeowners seeking a refinance in order to remove a name from the mortgage. In divorce for example, if one of the parties gets the house, they may want to refinance in order to remove their ex does not have any kind of ownership of the home. Or, if the home remains in both peoples name, but only one person lives there and cant pay, both people will pay the price in the longer run. It is usually a safe, wise decision to refinance in this case as to not be liable for your former spouses expenses or debts.

Refinancing the correct way can really save you a lot of money. This is extra money that you would have been otherwise spending every month on interest. Start your search for a quote with your current lender, get a written quote and shop that quote around to potential mortgage lenders. Often, they will match or beat the offer in some way to gain your business.

-M Petrone
RefinancingCondo.com

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