Everyone faces a hard time where they need more money but have tapped into all available resources they can think of. Your credit is maxed and your scraping by to pay your mortgage. What should you do? Consider refinancing your mortgage, thats what.

Generally refinancing a mortgage is the best and often only choice you have to get into a better mortgage and pay less monthly for your home. Mortgage rates are at a near record low all across the country. Refinancing your current mortgage into one with better terms rates or conditions can save you hundreds per month. Also, if you want you can shorten the extend the length of your mortgage and use that extra cash to pay other bills.

Below I have listed some things you can do to ensure you get the best mortgage rates, terms and conditions available when you refinance your home mortgage. Doing any one of these things will help save even more money through refinancing.

1)There are often hidden costs and fees associated with a mortgage refinance. These are necessary and can cost a few thousand dollars. Make sure to limit your home refinance to about 30% or so of your homes equity. This way you can avoid paying for private mortgage insurance, which can be costly. Also, make sure all costs are clear and outlined before signing anything.

2)Close any credit cards you can. Credit card bills and interest fees can be a great burden on your monthly expenses. Aside from having to deal with the dreaded bill collectors when you miss a payment you will also have to add on huge interest payments. That is why unless it is super necessary close whatever cards you can, at least temporarily. Once you have made a major portion of your credit card debt go away you can then have 1 or 2 cards to use. Also, this improves your credit rating which will allow you even bigger savings when refinancing a home mortgage.

3)Be sure to check your credit report. Also considered is your FICO score. These two things are the base of your mortgage refinancing. Most likely, if you have bad scores on these you will not be able to get the lowest mortgage rates available compared to those with better credit. Make sure to check the reports for inaccuracies or any questionable activity. Make sure to fix any errors prior to applying for refinancing as it will be hard to convince a lender it is an error.

Be sure to research any potential mortgage lenders and compare the quotes from a variety of lenders to make sure you refinance the right way and save as much as possible.

-M Petrone

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