Saving money is hard to do especially if you are in debt and paying a mortgage. However, refinancing is probably the best way to lower your mortgage payments and at the same time save you some much needed cash. If a homeowner is interested in refinancing they can save money one of four ways:

1.) Better terms

2.) Longer life on the loan

3.) Lower interest rate

4.) Negotiating lower monthly payments

Although refinancing is used more often for a mortgage loan, all different types of loans can be considered for refinancing. The most common loan that is refinanced is home loans but other types of loans including car loans are eligible for refinancing. However prior to going through the refinancing process there are a few things everyone should know.

If you are one of the few out there that have good credit or if you bought your home a few years back this is probably the best time to refinance. The current recession has given those less than qualified candidates the opportunity to qualify for lower rates that they couldn’t get when they were initially approved. Those that are able to secure an APR that is just a few points lower gain the potential of saving thousands of dollars a year. However you should keep in mind that for every time you refinance you will also be charged a fee depending on the loan amount, don’t forget to ask your lender about those fees.

It is not common for people to refinance through consolidating credit card consolidation although it can result in big savings. Those people who have multiple credit cards and have balances on all of them can really benefit from this option. By consolidating all credit cards into one with lower rates can save by making one lower payment.

Always keep in mind when making financial decisions to research any lender that you may do business with. It is also recommended to speak with an expert to get advice so you don’t get taken advantage of. Lenders are compete against each other so make up your own mind, don’t let anyone push you towards any loan that you are not 100% comfortable with.

-M Petrone

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