Many homeowners looking for a way to take advantage of the current ultra low mortgage rates want to know how soon can I do a mortgage refinance. However, first you should know what a mortgage refinance is, and if you will benefit financially from this. Refinancing is looking for a new mortgage with better rates, terms, or conditions and using this new better mortgage to pay off you existing one. Usually, if done right a refinance can take advantage of the low rates available now, and any credit or equity in your home that has grown since you purchased it, and will make your monthly payments lower for owning the same home.
Maybe you want to get out of the adjustable rate mortgage you are in now and desire to get into a more stable fixed rate mortgage, or you are not going to be staying in your current home for a long period and want to get into an adjustable mortgage (which usually has a low interest rate for the first few years) and sell your home before the rate gets too high. You could also do a cash out refinance, in which you refinance for more than you owe currently on your home and pocket the difference. For example if you owe $50,000 in 10 years on a $150,000 home, you could refinance that $50,000 mortgage into an $80,000 loan and pay it off in 10, 15, 20 or 30 years, while pocketing the $30,000 difference.
Do know that the potential lenders will carefully look into your financial situation. They will take into account your, income, debts, amount left on the current mortgage, current value of your home, credit history, and other factors. Typically the best deals are found by using a mortgage consultant, they do cost money but can save you way more than they cost in the long run.

The meaning of Mortgage Refinance.
A mortgage refinance can mean different things depending on your situation. A refinance could mean consolidating a second mortgage with the first mortgage into a single monthly payment, which can also be increased in years. This combined with the current near all time low home mortgage interest rates can potentially save you thousands of dollars. Or, you could have recently acquired a large amount of cash and wish to shorten the duration of your mortgage. You could refinance a mortgage that would both lock in lower interest rates, and shorten the length of your home loan by a number of years of your choice. The payments may even remain the same or close to it with the locking in of a really low refinance rate. Or, as discussed, you could leave your roller coaster of an adjustable rate mortgage behind and get into a stable fixed rate loan. This way your monthly mortgage payment would never fluctuate, regardless of market conditions. If you do a cash back refinance as we already went over, you can pay off some of your higher interest debts, credit cards, store credit, tuition fees, or use the money for anything you can think of.

Mortgage refinance facts
Do as much research before applying to a lender as possible. Learn what current interest rates are, your credit history, why you want to refinance, what you plan to do after the refinance, and your financial stability in the future. A mortgage refinance is not an end all solution to money problems, but could be a wise decision for a lot of homeowners who purchased their homes as recently as 1 year ago, sometimes less. Mortgage rates are now at an all time low, many people will save hundreds of dollars per month if they do a mortgage refinance the right way. Once you get a quote you are happy with, shop that exact quote around to a variety of lenders and see what they can counter offer with.

-M Petrone


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