5 Steps to Refinancing a Mortgage

Your mortgage likely represents your biggest monthly expense, hands down. That is why it makes so much sense to look into refinancing your mortgage every few years to see if it makes sense to do so. There are several telltale signs that this may be a good time for you to refinance your mortgage, including: a. average mortgage interest rates are down b. your credit score has gone up since you took out your existing home loan c. your current loan is for a relatively short repayment term, such as 15 years d. you have built up some equity in your home that you would like to cash out What exactly is involved in a mortgage refinance, and how should you go about it? There are some specific steps you should take if you want to ensure yourself the best-possible interest rate. If you are interested in saving money each month through having lower mortgage payments, here are 5 steps to refinancing a mortgage: 1. Look up your current interest rate and monthly payment amount: Start by getting your facts straight concerning your current loan. Write down or enter into a spreadsheet software program (like MS Excel) your current loan interest rate, your monthly payment amount, and your loan repayment term. This information helps you get a clear view of what you have to work with in terms of making decisions about a refinance. 2. Estimate what your home would sell for if you sold it right now: Now, it is time to figure out what your home's going rate would be if you sold it today. The most precise way to find out is to get an appraiser to come in, but this costs a few hundred dollars. A quicker, but less precise, way is to enlist the help of a real estate agent (realtor) you know and ask them to pull comparable listings on homes similar to yours in your area; find out what they recently sold for. 3. Calculate the amount of equity you have in your home: Now you can easily calculate the equity you have in your home. Just subtract your current loan's outstanding balance from the estimated or appraised value. That is your equity. The more you have, the easier it should be to refinance at a competitive rate. 4. Build a list of target lenders to approach for a loan: Having more choices always improves your chances of getting the best rate. Build yourself a list of at least 6 mortgage refinance companies. 5. Take the extra time to apply to all of the lenders on your list: Make sure you make the time for yourself to apply to each of the lenders on your candidate list. Just spending an extra hour or two shopping around for the best refinance quote could save you tens of thousands in interest payments over the life of the loan. Take these 5 steps to refinancing your mortgage. Find the best low-rate mortgage refinancing lenders at: Best-Rate Home Refinancing Lenders [http://www.home-mortgage-refinance-loans.com/refinance-home-mortgage-loans.html].