Mortgage Refinancing - 3 Tips to Help Your Save When Refinancing Your Home Loan

If you are in the process of mortgage refinancing, there are steps you can take to avoid overpaying for your next mortgage. By focusing on several key areas of your finances you will not only qualify for a better mortgage rate, but will pay less in lender fees and closing costs. Here are three tips to help you avoid overpaying for your next mortgage loan.

Mortgage interest rates are still very low and many homeowners, especially those with risky Adjustable Rate Mortgage loans are choosing to refinance their home loans. If you're thinking about taking the plunge and getting a new mortgage, comparison shopping will help you find the best mortgage offer.

Mortgage Refinancing: Check Your Credit First

Having mistakes or negative information in your credit reports will devastate you credit score and the mortgage rate you qualify for. Before you apply for mortgage refinancing it is important to request copies of your credit reports from each of the three credit reporting agencies and carefully review your records for mistakes.

Mortgage Refinancing: Save Your Money

When you refinance your mortgage loan you'll be required to pay closing costs. The origination fees and closing costs you pay can be as much as 3% of your loan amount so it is important to have this cash on hand to avoid mortgage refinancing delays. The more cash you have on hand when applying for mortgage refinancing, the better your application appears to the lender.

Mortgage Refinancing: Shop Smartly

Careful comparison shopping will help you avoid the majority of mistakes homeowners make when mortgage refinancing. Make sure you comparison shop from a variety of mortgage lenders and compare loans by requesting the Good Faith Estimate from each lender before you submit your application. The Good Faith Estimate allows you to do a line-by-line comparison of all the fees and interest rates associated with each mortgage offer. Don't get hung up just on the lowest mortgage rate; you'll need to consider lender fees and closing costs to make an informed decision.

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Posted in: Mortgage,Refinancing