How to get a good refinance Home Loan without getting into deep trouble.

When you choose to refinance Home Loan, what you want to happen is to exchange an existing mortgage loan (that is not advantageous to you) for a new loan that meets your budget and needs.  This is why it is very important to calmly contact your lenders and make sure that they answer all your questions prior to applying for a refinance Home Loan.

With your current financial situation, it is very tempting to refinance Home Loan, but this decision is not a simple question with a very simple answer.  Here are some of the things you need to consider if you want to refinance Home Loan:

	How long are you planning to stay in your home? If you don’t plan to stay long, then planning to refinance Home Loan for the purpose of reducing your home loan rates do not make sense.
	Do you have ARM (adjustable rate mortgage)? If you are going to retain your home much longer than the fixed term on the ARM, you may want to refinance Home Loan into a fixed mortgage.
	Do you have a second mortgage or private mortgage insurance? Sometimes, refinance Home Loan makes sense if you can restructure the existing mortgages into one (and the refinancing mortgage rate is lower than the combined rate of the existing mortgages)
	Do you have Jumbo mortgage? Depending on your current home loan rates and mortgage balance, it will make sense to refinance Home Loan into a conforming mortgage. You can do this by using a second mortgage to pay down the current one.

	Do you like to access your home equity?  Refinance Home Loan can provide some cash that you can use for debt consolidation, college tuition, or home improvements.  Most of these cash out refinances are priced higher than rate term refinance.
	Are you going through a separation or divorce?  You need to refinance Home Loan if the relationship you have is dissolving.  Quit Claim Deeds and Divorce Decrees don’t remove your partner’s liability from the mortgage.  So you have to be the one to remove that person.  It is definitely a huge risk.  Availing of refinance Home Loan to remove an ex-partner and to cash out their equity is treated as rate term refinance.
	Are you concerned about the declining value of your home?  Refinance Home Loan is priced based on value of loan.  There are underwriting guidelines limiting the value of the loan.  The lenders have restrictions on lending limits of loan to value in “declining markets”

For your refinance Home Loan, here are some dos and don’ts:

	Do not ever try to “play with the market” and get the lowest rate.  In this climate, it is far too volatile to do this.  Lock the rate if it makes sense.
	Complete an application for refinance Home Loan and provide the necessary information that your mortgage professional needs in order to lock your interest rate.
	Don’t rely on a very simple “rate quote” if you do not know the costs involved.
	Get a good faith estimate from your trusted mortgage professional.

Remember that you need to take enough time to look at the big picture first. Because a refinance Home Loan can either move you forward or get you into more debt.