With mortgage rates near all time lows, now is a great time to consider refinancing your mortgage. Unless you recently purchased your home, odds are, a refinance can save you a lot of money. Getting lower interest rates, or better terms and conditions on your mortgage can save a homeowner hundreds of dollars per month. Here are some tips for homeowners considering refinancing.

Always know why you are refinancing your mortgage. This means understanding what you want from it. Do you want lower interest rates? Lower mortgage payments? Want to change the length of your home loan? Interested in getting cash back from your homes equity? Than refinancing is right for you. When you know why you want to refinance you can cut to the chase with potential mortgage lenders or banks, and pursue the mortgage refinancing option you desire, not the one the lender is trying to sell you on. This cuts down on unnecessary research, and also helps show the mortgage lender or bank that you are serious about refinancing, and have done your research. This will encourage them to offer you a truly good deal, and minimize the risk of overpaying.

Make sure that you have copies of your credit report, tax returns, bank statements, pay stubs, and all other relevant financial information. Especially these days, information that can not be verified will disqualify the application from being approved. Also, make sure to check these documents yourself, and verify that all of them are accurate, complete, and up to date. This will prevent your application from being denied, or returned to you because some information is not present.

Always shop around and compare the costs and benefits of the different offers from potential mortgage lenders and banks. Each company will have their own policies, rates, terms, and conditions, which can vary drastically. Make sure you carefully compare the true mortgage refinancing costs, interest rates, and the terms against a competing offer. Ask questions if any come up, if they can not answer do not use that lender.

Mortgage refinancing is not as hard as a lot of people make it out to be. Even in todays economy, getting approved for a refinance is not difficult at all. Mortgage lenders and banks are eager to help homeowners refinance their home loans, and will usually be very good about helping them along the way. Take some time, and do some research, this will ensure you are getting the best refinancing deal possible.

-M Petrone

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