In order for you to get the best mortgage-refinancing rate available to you, you will have to do a little research and a little math. Because it costs money out of pocket to refinance, it is only beneficial to you if you plan on staying in your home long enough to make up the difference between your refinancing costs and your interest savings.

1. Get the Best Mortgage Refinancing Rate
In order for you to get the best mortgage-refinancing rate available to you, you will have to do a
little research and a little math. Because it costs money out of pocket to refinance, it is only
beneficial to you if you plan on staying in your home long enough to make up the difference
between your refinancing costs and your interest savings. If your loan has a pre-payment penalty,
make sure your savings will more than cover the cost of the penalty. Some penalties may be high
enough to prohibit refinancing entirely.
No-Cost Refinancing
Most “no-cost” refinancing options have higher interest rates than similar loans that do require
closing costs. Some “no-cost” lenders offer rebates on points to help counteract the higher
interest rate and cover some of the fees not covered by the lender. It is always best to make sure
that you understand your refinancing paperwork as there may be other fees that you are still your
responsibility.
The higher interest rate on a “no-cost” refinance can be the best mortgage-refinancing rate if you
plan to sell your home in a few years and have an interest rate above the current market rate for a
“no-cost” refinance. If are able to make the payment up front and plan on living in your homes
for more than a few years, you will probably want to seek a lower interest rate.
Refinance With Your Lender
The best time to refinance with your current lender is after you shop around. Your current lender
may be in the position to offer you a better deal than a new lender, but because they are content
with your high interest rate, they will not immediately try to help you unless there is a threat that
you may obtain a new loan. By shopping around you will know what your other options are

2. before you approach your current lender; if they are not able to offer the best overall deal you
can always go with another lender.
Why Are You Refinancing?
When deciding the best mortgage-refinancing rate for you, it is always important to examine
why you are refinancing. If you are refinancing to get a better interest rate on your loan and you
still have a substantial balance, refinancing with a term that is close to or shorter than your
current term will save you the most money over time. If you simply need to reduce your monthly
payments, then refinance with the best interest rate and monthly payment breakdown you can
get. Unfortunately, this arrangement usually comes with a longer repayment term and may lead
you to pay a higher total interest overall. If you would like to take cash out for home
improvements or debt consolidation look at both a home equity loan and refinancing before you
decide to refinance. If you have an adjustable rate mortgage (ARM) and would like to lock in
your rate, shop your options and then talk to your current lender. Your current lender may be
able to offer you a better overall plan.
Remember, any lender wants you to take the deal that nets them the most profit, so it is always
best to consult a financial advisor or a neutral third party before you make your final decision.
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