If you are considering refinancing your home, now may be one of the best times to ever consider doing so. Mortgage rates are at near record lows across the country and if you can just save around 2% or more from a new mortgage rate, you will generally save money. I have listed 5 tips that will make refinancing your mortgage easier, and ensure the most savings you can get.

1) Make sure to do some easy homework beforehand.
You should know beforehand how much of a payment you can afford every month. An easy to figure out payments is to use an online mortgage calculator ( there is one on the bottom of my site) to get a rough estimate of potential payment amounts. The three biggest factors in your payment are the interest rate, amount of the mortgage, and the length (usually in months).

2) Comparison shop different mortgage lenders.
Be sure to, at minimum, compare the quotes from 3 reputable mortgage lenders. Make sure the comparison between these quotes are all for the same terms. This way you can easily analyze three different mortgage lenders quotes, and they are all the same terms, such as 30 year, fixed rate, etc.

3) Get a GFE (Good faith estimate) upfront and in writing.
This is a very crucial and important thing to do. Mortgage lenders can easily quote you one thing when talking to you, but getting that deal on paper can be a different story. There a lot of greedy salesman out there who tell you what you want to hear until it comes to paper agreements. Make sure to get a good faith estimate from a potential lender. This helps make sure there are no surprises when it comes to closing time.

4) Avoid any up front fees or costs.
The only possible fee you should have to pay before the closing is an appraisal fee. This should only be done though if your lender is asking you too or you feel the estimate on your home is extremely low.

5) Stay clear of prepayment penalties and early redemption loans.
As I said earlier, now is a great time to refinance you mortgage. Mortgage rates all over the country are hovering just above 5%. Now is a good time to refinance into a fixed rate mortgage and stay away from those adjustable rate mortgages. Try to stay away from mortgage loans that have prepayment penalties or early redemption fees or costs.

-M Petrone

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