Is your mortgage payment pushing your finances to the limits? Has an adjustable rate mortgage been increasing in rates and you can not do anything about it? If these are some situations you are facing you may be a great candidate to consider a home mortgage refinance. Refinancing a home mortgage will allow you to take advantage of record all time low mortgage rates across the country and get in to a more stable fixed rate mortgage.

Refinance a mortgage for predictable monthly payments.
An adjustable rate mortgage (ARM) does just that. It adjusts the interest rate you pay based on market conditions. It is not unheard of for a homeowners mortgage to nearly double when the full effect of an ARM kicks in. The ARM loans are not good if you thought your payment would be around $800 monthly and now you must come up with $1400 when the rate gets adjusted. On top of that, there is a economy in trouble right now in America and getting or holding on to a good job is hard enough as it is. Refinancing a mortgage into a fixed rate you will pay the same exact payment every month regardless of market conditions. Your $800 dollar payment would stay at just that, $800 until the mortgage is paid off. Fixed rate mortgages are a financially stable thing to get into due to their ironclad payment guarantees.

Cash out mortgage refinancing.
Refinancing a home mortgage will often give you the option to get cash in addition to the mortgage refinance. You can use this money for anything you wish. Although, it is smart to use this to further reduce other debts such as credit cards or car loans and strengthen your financial future. You can however use this money for vacations or another home. However you want to just make sure you are smart about it.

Make sure you know the final closing costs.
When getting into a mortgage refinance, be aware of any closing costs and fees you may have to pay. Sometimes there are prepayment penalties worked in to your current mortgage. Your loan documents will have this information in them, check to see what they say. Sometimes a mortgage lender may say they have no cost or low cost refinancing. Do not fall for it. Usually these fees are added on in the form of higher interest rates. Plus you should try to pay any fees upfront in order to avoid wasting money on interest fees on these costs, which would happen if you add the fees to the loan amount. Start a search for a potential mortgage lender online. Once you get a quote you like get it in writing. Shop that exact quote around to other potential mortgage refinance lenders and see what they do. Often they will beat or match the offer presented to them, which gives you options. Take your time and good luck!

-M Petrone

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