When homeowners see the low interest rates being advertised on television, the internet and in magazine ads they obviously start to think about refinancing their own home mortgage. Currently interest rates are at their lowest in decades and it may seem very enticing to refinance your home to cut down on your monthly mortgage payments. However, refinancing isn’t for everyone and before you dive into a decision you may regret, consider if refinancing is right for you.

First off, be wary of mortgage lenders offering unbeatable deals. Yes, interest rates are low but that doesn’t mean you won’t be paying a service fee, closing costs and other expenses that can add up to a loss when all is said and done. Experts say that refinancing only makes sense when you can lower your interest rates enough t o pay for the closing costs before you plan to sell your home.

If you have an adjustable rate mortgage most experts will advise refinancing into a fixed-rate mortgage. You may have to pay an upfront closing cost fee but it will be worth it to avoid the chances that your payments will go up when the interest rates adjust.

Since the subprime mortgage crisis of 2007, lenders have gotten much stricter about whom they offer loans to. Just because you got a mortgage before does not guarantee that you will qualify for refinancing. If your credit is bad or you have outstanding debts that are high there is a good chance you will be turned down when you submit an application to refinance. Carefully review your financial situation to spare yourself the time and hassle of going through an application process you will not qualify for.

Before you look into refinancing your home ask yourself why you are doing it. If it’s just to let the neighbors know that you have the lowest rate on the block it’s probably not a good idea. Do you want lower payments? Are you looking to pay off your loan faster? Do you plan on moving within the next two years? These are important questions you need to ask before you decide to refinance your home mortgage.

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