Use caution when refinancing your mortgage loan by Jonn

Homeowners anxious to lower their mortgage interest rates are refinancing in record numbers, according to industry experts. While refinancing may save you perhaps hundreds of dollars off your existing mortgage, it is not for everyone. If you are considering refinancing, the Better Business Bureau suggests you shop around, compare prices and negotiate. But also move with caution when dealing with some lenders. knife in the water.

To help you decide if refinancing is for you and to help you prepare to approach a financial institution, the BBB offers these tips.

When you refinance your home, you simply apply for a new mortgage at the lower rate in order to pay off the old loan. This means that, for many lenders, you will again be required to pay most of the costs you originally incurred to get your first mortgage - loan application fees, title search, appraisal, credit check, lawyer's services, discount points (in many cases) and other finance charges. But, many institutions offer plans where most of these fees are folded into the loan, reducing your actual "out of pocket" cash to a minimum. Most consumers are able to take a tax deduction on the interest. Ask your tax advisor if this applies to you. More information

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This article was written by Jonn.P