Here is some simple, money saving, advice for when refinancing a mortgage. These tips can easily help a homeowner avoid some expensive pitfalls which can be easily avoided when refinancing a home loan. Mortgage refinancing is not a hard thing to do, and with this advice, it will be even easier.

Always make sure, just like any big purchase you ever make, to shop around. Different mortgage lenders and banks will offer homeowners different interest rates, different loan types, and often both. This means what is considered a good deal at one mortgage lender, may not be the best deal you could be getting from an alternative lender, or loan type. Even if you have found a mortgage lender you like and trust, get a few different quotes. Make sure they include all closing, and associated filing fees. This way, you can ask a lender why their rates are higher, than the ones you have quoted, which you can show them in hopes they will match it.

Homeowners should know exactly why they want to refinance their home loan, and then choose the appropriate refinancing loan type. Do you want to save money every month? So you want smaller monthly payments? Would you like to tap into some of your homes equity? These are all important questions.

Homeowners who want to save money every month should attempt to get a mortgage refinancing into a new home loan with a lower interest rate. Right now, odds are the average interest rates are lower than the rate you have on your home loan. Saving 1% in interest on the mortgage easily adds up to a lot of money, and pays down your principal a little quicker as well. Homeowners who need a lower mortgage payment can refinance into a new extended length loan. This is simply extending the length of your home loan, and getting reduced payments instead of cash from the equity. Homeowners looking to get cash out of their homes value should attempt to get a cash back refinancing. This is when a homeowner refinances into a new mortgage which is larger than the mortgage they have now and pockets the difference.

-M Petrone

Subscribe via email

Enter your email address:

Delivered by FeedBurner