If you have bought your condo over 3 years ago chances are you can refinance and take advantage of the record low mortgage rates. Refinancing and extending the length of your mortgage can be a better decision than foreclosure, and a refinance into a lower rate that will save you money every month. Refinancing a condo mortgage is taking out a whole new loan to pay off the existing one. The new loan however will have better terms, rates, or conditions than your current mortgage. There are a lot of things to consider before jumping into a condo refinance, no matter how good the deal looks.

1. Refinance into a fixed rate mortgage if you are in an ARM (Adjusted rate mortgage). This type of loan offers long term financial stability and mortgage payments that will not change.

2. Once you get a rate you like shop that rate around to different mortgage lenders. This will ensure that you get the best rates and refinancing deals possible. Often a competing mortgage lender will match or beat the offer you brought them.

3. Be careful of cash out refinancing. This endangers your financial stability, and your homes security. Any money that is you borrow will have to be paid back somehow, usually higher monthly mortgage payments.

4. Use the money you save every month wisely and pay down other debts. You can even pay more every month on your mortgage and even further reduce unnecessary interest payments.

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