Refinancing a home loan may be a great idea. However, you must be aware of a few mistakes which are commonly made, and can cost you money you do not need to spend. Here the 2 costliest, and easiest to avoid, mistakes homeowners make when refinancing a mortgage:

-Paying a Yield Spread Premium
This is an extra expense, that is commonly added on to mortgages. While paying this may be unavoidable, it can often be negotiated down. Commonly, this can account for up to 3% of the loans total, which seems like a little, but is actually a lot. This yield spread premium, is just a bonus a mortgage lender or broker gets for getting you to sign into an interest rate that is actually higher than you qualify for. Mortgage lenders and banks make money off of closing costs and interest charges, paying an unnecessarily high yield spread premium is not at all necessary, and can save you a lot of money.

-Not Double Checking your Credit Report
Credit reports are free, and easily requested through the internet. Always make sure to double, and triple check your credit report for any errors, inaccuracies, or things which should not be there. If you find any errors immediately contact the credit reporting agencies, and notify them of your findings. An error in your credit rating can prove costly, and may even get you denied.

Mortgage refinancing and modification
is a delicate process. Even the smallest things can throw everything out of line and cost you money, or get you denied. Always make sure to seek advice when you need to, and keep your financial future in mind. Patience and a little research will be your beast weapon in finding the best refinance possible.

-M Petrone
www.RefinancingCondo.com

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