Many homeowners want to refinance to take advantage of record low home interest rates. However, most people have never refinanced before and have some questions. Here are a few answers for some of the most frequently asked questions about refinancing a home mortgage.

Does mortgage refinancing make sense for me?
Many homeowners these days are wondering if refinancing can help them. The first thing homeowners should do is determine their financial and mortgage goals. Do you need a cash back refinancing? Do you need lower monthly payments to ease financial strains every month? Want to shorten the length of your home loan? Any of these things can be done through a variety of home loan refinance options. After you have defined your goal and what you want, contact a variety of mortgage lenders and banks to see which one can offer you the best rates, and service.

Are loan agents and officers necessary when I apply for a mortgage refinancing?
That all depends. If the mortgage refinancing is pretty straight forward, it may be easy enough to do alone. However, if the homeowner has bad credit, an upside down mortgage, or is not able to document their income, things may get a bit more complicated. Homeowners with a solid credit rating is much more likely to not need help. Homeowners who have a shaky financial background, who need to close quick, or need other things besides a standard mortgage refinancing may benefit from using the advice of a mortgage or loan officer.

Does the 2% rule matter when refinancing a mortgage?
Not so much these days. Many options now exist that were never around before. With so many options, many of which are no cost and zero points, refinancing costs and fees can be recouped very quickly. However, when paying closing costs and fees, and points, the 2% rule of thumb may still work and provide some basic guidance.

Refinancing a home mortgage would be very beneficial for many homeowners to do right now. There has never been a better time to get approved for a low interest rate home loan refinance. Many homeowners are straining financially and their mortgage payment is the biggest problem. Mortgage refinancing can relieve many peoples financial burdens, save them money, prevent foreclosure, or all three. Everyones situation is different though. Homeowners should contact a variety of mortgage lenders and banks to see which one is offering the best deal.

-M Petrone

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