10 Things to Know Before Refinancing Your Home

Photo by Jack Duval

Photo by Jack Duval

Considering a refinance? Read this.

When you refinance your home, you are actually replacing your current loan, with a different one so you can get better terms and a better interest rate. If you have an impeccable credit score and a good payment history, refinancing can be a profitable decision that saves you thousands of dollars. On the other hand, a tainted credit history coupled with a lack of knowledge can make refinancing a risky proposition.

When making the decision to refinance it pays to shop around online for the company that best suits your needs. There is a great deal competition out there among refinance companies which gives you an edge if you leverage it correctly. You may be able to negotiate a great interest rate and terms that suit your circumstances perfectly. The process takes time, usually several weeks before closing is finalized. Try not to get discouraged.

Before you take the first step, you should know that the mortgage lending market has gone through substantial changes lately. As such, there are important factors to take into consideration before you embark on refinancing your home. To help alleviate some of the frustration here are 10 things you should know before refinancing your home.