Homeowners need to save money. Everywhere you look, foreclosures, mortgage defaults, and financial hardships make paying the monthly mortgage harder and harder. With mortgage refinancing being such a popular option, many homeowners would like to know how to get the best interest rate and refinancing deal possible. Here are some tips which will help you when refinancing.

Lower Rates Vs. Points
When homeowners want to get a lower monthly mortgage payment, they need to figure out whether it is better to get the lowest offered interest rate, or to pay points off. Different situations will make one option better than the other, and only the homeowner will be able to figure out which is the better option.

Tricky Mortgage Interest Rates
Do not be victim to a predatory mortgage lender. Many times when a 0% mortgage rate is offered, the loan will balloon at a later rate. This is a game and tactic that many mortgage lenders are using these days. However, these mortgage lenders are easy to spot, and avoid. Make sure you are dealing with a respected, and truthful mortgage lender or bank.

Check for Hidden Fees and the True Cost of Mortgage Refinancing
Odds are if you think your home loan interest rate is extremely low, it most likely is. Always be sure to get the total costs for a refinance. Check carefully for hidden fees or costs which can easily add up to thousands of dollars. If it looks to good to be true, than it most likely is.

Get a Good Faith Estimate (GFE)
You have the right to request a good faith estimate from any potential mortgage lender. Make sure you ask for a copy, and carefully review it. If when you are going over it and find anything which you question, ask. If the mortgage lender or bank can not answer your questions, find a new lender.

Have patience and know that if your application is complete and accurate, it will get properly reviewed. Make sure to get in contact at least once a week to check the status of your application.

-M Petrone

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