There are many people who are considering refinancing their home mortgage during this rough economic time. The goal for refinancing ones mortgage loan is being able to find the lowest rate possible. People looking to refinance commonly make the mistake of not preparing themselves prior to applying for refinancing loan. To ensure you get the best rate when you refinance there are a few things you should know.

1.Remember to be patient. Since the demand for refinancing is so high, lenders are backed up with requests. In some cases it can take up to 6 months for an application for refinancing is processed. All you have to remember is to be patient because as soon as your application for refinancing is processed you will have a lower rate than you had with your original loan.

2.Your credit score. Getting the lowest rate out there is no longer a guarantee even though you have good credit. Nowadays one would need a near perfect score in order to get the very best option available. Check your score and check what your options would be, if you have a score of 720 or higher you are in pretty good shape and should not really have any problems. If you feel overwhelmed and want some help hiring a credit counselor can be helpful.

3.Home equity. If you are trying to refinance your mortgage but your home has no equity be prepared to be turned down. Lenders are requiring homeowners who what to refinance have a minimum of 20% equity in their home. If you don’t have the minimum of 20% equity you can try paying a large payment so that you can get to that point.

If you are considering refinancing your homes mortgage make sure to keep these tips in mind so that you can get through the process. Get quotes from different lenders to ensure you get the best option for your particular situation. Always remember that if you are not comfortable with the terms that are given to you, you can always say no.

-M Petrone

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