If you have bought your home or condo more than 3 years ago the chances are high that refinancing your mortgage will save you a lot of money because of the record low home interest rates that are available now. Refinancing a home mortgage will also save a lot of homes from being foreclosed on because the monthly payments will be much more affordable. Here are some things people should know about refinancing a condo or home into a better, more affordable, monthly mortgage payment.

1)Always be aware of what type of loan you will get into when refinancing. Many homeowners are looking to refinance right now due to low interest rates, but many people are getting into adjusted rate mortgages. Sometimes an adjusted rate mortgage makes sense, but if you plan on living in your home for a long time, a fixed rate home loan is probably best. The stability of a fixed rate mortgage will be worth it in the long run as interest rates will most likely not get any lower than they are right now.

2)Make sure you shop around to competing mortgage lenders and banks to ensure you get the best deal and interest rates possible. Ask for a written quote as to what you are able to qualify for and shop that around. This written quote will often be valid for a few business days and shows other lenders and banks you are serious and prepared to refinance a mortgage. With interest rates as low as they are, many lenders and banks have different offers that will be available to you with interest rates that vary.

3)Always understand that a cash out mortgage refinance needs to be paid back. While a cash out refinance is a good way to get a large amount of low interest money, it also can put your home and financial stability at risk. Make sure you fully understand the risks, and rewards, of cash back mortgage refinancing before you agree to anything or risk your home.

4)After you refinance into a better, and cheaper mortgage make sure you put the saved money towards your other debts and expenses. This will increase your credit rating and help your overall financial situation in the future. This money can even be used to make bigger monthly home loan payments which will save you even more money in the long run.

Refinancing a home or condo is not that difficult and can save a homeowner hundreds of dollars per month. Mortgage interest rates are near all time lows right now and millions of homeowners will save a lot of money by refinancing. Homeowners should take action now and refinance into a better, more affordable, monthly mortgage before the interest rates go up.

-M Petrone

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