| The lower your interest rate on your refinance | | | | If you want to tap into your equity, consider applying |
| mortgage, the more moneyyou will save. But not all | | | | for a separateloan after you refinance, like a home |
| refinance loans are created equal. To getthe lowest | | | | equity line of credit. That wayyou won't be paying a |
| interest rates, follow these three tips when applying for | | | | higher rate on your entire principal. |
| yourefinancing. | | | | 3. Lower Your Rate With Points |
| 1. Refinance Your Entire Mortgage | | | | As with your first mortgage, you can lower your rates |
| Refinancing your entire mortgage will help you to | | | | by buying points. |
| qualify for thelowest rates. Having split mortgages or a | | | | This is a bit risky in that you have to keep your loan |
| home equity line of creditelevates your risk level and | | | | for seven yearsusually to recoup the cost. To make |
| rates. | | | | sure this is your best choice,compare lending offers. |
| However, if you have a really good rate on one | | | | Calculate the cost of points and your potentialsavings. |
| mortgage, then you maynot want to combine those | | | | In addition to these tips, comparison shopping will also |
| mortgages. Take the time to request quotes forboth | | | | help you get alower interest rate. Each lender looks at |
| loan situations. Within minutes, you can get an answer | | | | refinancing applicationsdifferently, so with careful |
| fromlenders and know which is your best option. | | | | searching, you can get a better deal. Start |
| 2. Don't Cash Out Your Equity | | | | byrequesting a loan quote, then compare numbers, |
| Cashing out part or all of your home's equity will also | | | | both interest andclosing costs. |
| raise yourrefinance rates. So keep that equity in place | | | | Just remember that the lowest interest rate will not |
| while you apply forrefinancing. It acts much like a down | | | | always be thecheapest loan. Factor in the cost of |
| payment did for your original home loan. | | | | fees to be sure you will come out ontop, especially if |
| The larger your equity, the better your rates. | | | | you plan to sell or refinance in a couple of years. |