Refinancing a home mortgage is an option many homeowners look into when they are having a hard time paying their home loan, or high interest rates from an ARM (Adjusted Rate Mortgage) loan have kicked in. Something to remember when refinancing your home is that your loan length will be increased unless you choose to get into a 15 year loan. This may discourage some homeowners who are reaching the age of retirement. Refinancing a home into a new 30 year loan when you are 55 years old means that you will be paying off your home until you are 85. Where as a 15 year mortgage would be paid on by the time you are 70.

A home mortgage refinance is great for reducing your interest rates, but their will be closing costs and fees involved. Some mortgage lenders and banks offer a no or low cost closing option but generally, the interest rate you get will be higher to make up for the thousands of dollars in closing costs. Make sure you take into your calculations and considerations these costs when figuring out if a refinance is the right choice for you. A lot of times though, these costs are easily minimized by the savings you can get, especially if you need to save your home.

When considering a refinance make sure to check with potential mortgage lenders and banks to find one that has the lowest rates and best terms, conditions and closing costs. Only refinance your home if you can get a interest rate that is 2% or more lower than your current interest rate. Refinancing into a higher rate will make your payments even higher!

Homeowners should take advantage of the record low mortgage interest rates available all over the country and refinance their home now. Add that to President Obamas mortgage stimulus plan and millions of homeowners will save hundreds of dollars by refinancing their home mortgage today. Refinance the right way and save a lot of money every month, and maybe your home.

-M Petrone

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