With mortgage rates at near record lows across the country and nearly everyone looking to save money, mortgage refinancing applications have sky rocketed. Everyone likes saving money and I have yet to meet a person who won't put a little effort in if they could save a lot. Personal financial situations make a difference but a refinancing a mortgage could probably lower your monthly mortgage payment by hundreds every month. Here I have included 5 tips to help you when refinancing a home mortgage and help ensure you get the best mortgage rates terms and conditions possible.

Point or No Points on Your Loan
Try to figure out if you will benefit more from paying the points ahead of time or having a lower mortgage rate. Take into consideration how long you plan on living in your home and take that into account as well. This should be one of the first things you should do in order to know if a refinance is even the right thing for you to do.

Do not get fooled by advertisements of super low Mortgage Rates.
Do not get lured in by the advertisements for a mega low or 0% mortgage rate. With any boom market their will be greedy mortgage lenders who use these terms loosely to lure you in. Sometimes an ARM loan has a 0% rate but only for a few months before the high interest rates kick in.

Beware of hidden fees and costs.
Like it is always said if something seems just too good to be true it most likely is. If you get an amazingly low mortgage rate make sure to carefully read all terms and conditions because odds are you are going to be paying that somewhere. Make sure to ask questions of your lender regarding the total cost of all closing fees or costs that are associated with mortgage refinancing. Try to pay as much or all of these costs upfront so you do not have to pay interest on them for the length of your mortgage.

Get a Good Faith Estimate
You legally have a right to a good faith estimate from a potential mortgage lender. You should get one on request from any mortgage lender or bank. Read this estimate very carefully and double check all the terms and conditions until you feel secure you understand it all.

Long Term Thinking
Consider how long you plan to live in your home and take that into consideration. This will effect which loan option is best for you. Do not forget to add closing costs and fees into any calculations you do.

Refinancing a home mortgage may not be the best decision for everyone but can be a huge savings for a lot of homeowners. Make sure you compare a variety of mortgage lenders and see which one offers you the best mortgage rates terms and conditions. A lot of lenders will match or beat a mortgage quote you bring into them. Do a lot of research and be sure you know it is the right decision for you.

-M Petrone

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