Millions of homeowners can potentially benefit from getting a mortgage refinancing in todays market. Interest rates are near record lows and new Government programs make more people eligible to refinance than ever before. However, most people do not know that there a few things you can do to ensure you save the most money possible and get the absolute best mortgage refinancing package, and price, you can. Here are some money saving tips for homeowners looking to refinance a mortgage.

1)Review Your Credit Report
Free copies of your credit report are available once per year for free. Make sure that prior to refinancing a mortgage you have taken the time and reviewed this document for errors and mistakes. Many people are surprised when they get denied a mortgage refinance only to find out later it was due to an error in their credit report. Do not let small errors effect your mortgage refinancing eligibility, or the price you end up paying for one. Check this document, and then check it again. Make sure it is 100% correct before turning it in with your application. If there are any errors, make sure they are corrected prior to refinancing a mortgage.

2)Get Rid of Private Mortgage Insurance and Yield Spread Premiums
Many homeowners have built up enough equity in their home that they should no longer require mortgage insurance of any kind. Some people need to get it but this is usually for people with little to no built up home equity. A lot of homeowners have been unnecessarily been paying private mortgage insurance for years and do not know it. Another very common but little known expense is known as the yield spread premium. This is basically an additional commission awarded to the person who arranged your home loan refinance. This is not necessary at all and is often negotiable if you are not able to get it removed all together. These two things can easily add up to 3% or more of your home loans total value.

3)Make Improvements to Your Credit, Bank Statement, and Debts
This is by far the hardest, but most beneficial thing any homeowner can do prior to refinancing a mortgage. Homeowners would really benefit from closing open lines of credit, reducing or eliminating small lingering debts, and trying to save as much money as possible in their bank accounts. All of these things come into play when a mortgage lender or bank is deciding whether or not to give you a mortgage refinancing approval, and at what cost. You can easily save a few percentage points in interest by saving a few thousand dollars, paying off small debts, and closing some lines of credit. This is the toughest thing for people to do but really pays off, especially in the long run.

Every persons financial situation is different. There are also a lot of different reasons people want to refinance a mortgage. However, these tips apply to everyone considering a mortgage refinance and can save you a lot of money. Do as much research as you can before refinancing a mortgage, but these tips will apply in any situation.

-M Petrone

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