Mortgage refinancing is a very beneficial move for many homeowners right now. That is because interest rates are low, and Government housing bailout programs exist that are helping struggling homeowners. Regardless of the situation though, many homeowners have the same question. When can I refinance my mortgage? Here is some help.

The first thing homeowners should do is understand that they can refinance as often as they want to. There is no rule or law that sets a limit on homeowners mortgage refinancing options. However, refinancing a mortgage multiple times in too short of a time frame will have many pit falls for homeowners who refinance to often.

Mortgage lenders and banks always have fees and costs associated with refinancing that can easily add up to the thousands of dollars. Plus, the lenders and banks will notice your refinancing history and may be reluctant to offer you help, or if they do it comes at a heavy price. Also, these days especially, many homeowners are underwater and owe more than their home is worth. This will make refinancing a mortgage even harder due to having a low amount of equity in your own home. Low equity and an underwater mortgage make it hard to refinance, in any market.

Typically, refinancing a mortgage too often is not beneficial just due to fees and costs. Many homeowners also have a “Mortgage Prepayment Penalty” in their current home loan. This is a clause that states if you pay off your home loan early, which is what a refinancing would do, you will be charged a fee that can be thousands of dollars. This fee needs to be taken care of prior to being able to get approval for mortgage refinancing. In addition to that, a homeowner may need to pay for private mortgage insurance, upfront points, loan origination fees, and a long list of others. Combine all of this and refinancing can easily cost $5,000 or more, which seriously eats into the benefits if you need to pay that much every time.

Homeowners who are looking for ways to save money and are considering refinancing may find help. However, be aware that, in general, refinancing a mortgage too often is never a good idea. The benefits are easily outweighed by the costs and can harm your financial future. Build some equity, wait a little while, then seek a potential refinance deal.

-M Petrone
http://www.RefinancingCondo.com

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