When homeowners wish they could get better rates, terms, or conditions on their home loans they need to look into refinancing. Refinancing an existing mortgage can allow the homeowner to get a new mortgage with better rates, therefore saving money. Mortgage rates are currently at all time lows across the country. You only need to refinance at 1% (Hopefully more) to be able to see the savings really add up. As, a bonus the mortgage lender you choose may have better terms or better service for you too. Researching which refinance option for you is important. You can use the internet to quickly and thoroughly research potential lenders.

Basically, there are two types of loans for mortgages. There are ARM (Adjusted rate mortgages) and fixed rate mortgage loans. A lot of people choose to refinance out of an ARM loan into a fixed rate loan. An ARM loan can mean your monthly mortgage payment can fluctuate. A fixed rate mortgage means that your mortgage rates will not change from ever and always be the same. A lot of homeowners have seen their arm increase their mortgage payments by hundreds of dollars per month. A fixed rate loan is the suggested route to go for long term financial stability.

Overall the most important thing to know is how much you will save and how long it takes until the costs of a refinance even out and you see true savings. Be sure to compare rates between different lenders. Once you do get a refinance quote from a lender you like get it written down on paper. Shop that quote around to the potential mortgage lenders you have already seen and liked, or who have already quoted you, and see their response. Often, they will beat or match the offer you bring in to them just to get you as a client. Make sure you are aware of all closing costs and any associated fees that are involved in your refinance, they should be disclosed upon your request. The fees can vary greatly from lender to lender and should be paid off. You do not want to have to add these fees to the loan total and end up paying interest on these fees for the length of your loan.

There can be a lot of advantages to properly refinancing your home loan. You can get a lower mortgage rate, lower mortgage payments, cash back from the refinancing, and plenty of others. Make sure you do not lose money by following the rates, knowing your credit rating, and knowing as much as you can about mortgage refinancing. Make sure to do a lot of research before doing anything and always ask questions of any potential mortgage lender.

-M Petrone


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