Refinance your home mortgage with these great tipsIf it seems as though every time you turn around someone is talking about refinancing, it is because there has never been a better time to do it. If you financed years ago, but received a high mortgage rate, this is your opportunity to get a better rate, reduce your payment and save yourself some money. If you financed with an adjustable rate that now stresses you out every day, now is the time to get into a more stable mortgage. Would you love to have the cash to pay off old debt or to invest? Refinancing is a smart decision.

Some people are intimidated by the process, but refinancing is not all that scary. You financed your house the first time around, so this should be a walk in the park. Below are some tips to help with the process.

Refinance for the Right Reason

There are a lot of good reasons to refinance. However, if you are refinancing to take the cash to go shopping, or pay for an extravagant vacation, you may find yourself regretting your decision. There is nothing necessarily wrong with splurging on yourself; just make sure it is absolutely what you want to spend your money on. It does not hurt to at least put a little money aside for emergencies too.

Check Your Credit

You will want to request a credit report about 30 day before you refinance home mortgage. This does not mean that you have to necessarily wait 30 days to move forward, but this will give you time to dispute any errors.

Shop for Mortgage Rate

You may be tempted to just stick with your current lender because you already are comfortable with them, or don’t feel like going through the process of shopping around again, but this may not be a good idea. Your current lender very well could be offering the best rate, but unless you do a little comparing of lenders and rates, you will never know. You owe it to yourself to seek out the best rate possible. Even half a point could make a significant difference in your payment.

Understand Your Documents

You may be so excited to receive that big check back that you really do not pay attention to the fees. You might even notice extra fees, but they seem so small compared to the check you are holding that you hardly find them alarming. This is your money! It does not matter how much you are getting back, every little bit makes a difference.

There is a very good chance that those fees are supposed to be there. However, you won’t know if you don’t ask. If you don’t understand something on a contract, don’t hesitate to have someone explain it to you.

There has never been a better time to refinance. Why pay a higher rate and a high payment, if you don’t have to? This is your opportunity to have some extra money in your pocket every month that you have been living without. It shouldn’t be too hard to think of something to do with it!