| Refinancing your home mortgage can come with | | | | pulling your credit. |
| some great perks. If you do it with no money out of | | | | 2. Make sure that your original mortgage does not |
| pocket, you can skip one to three mortgage payments. | | | | have a pre-payment penalty or early payoff penalty |
| You can save money on your payment or pay off | | | | of any kind. Sometimes people will get into their |
| your entire mortgage faster when you have better | | | | mortgage with the mortgage having a pre-payment |
| terms. Here are a few things to pay attention to when | | | | penalty and they will not even know about it. |
| you refinance your mortgage loan, to make sure that | | | | Pre-payment penalties usually range from 6 months to |
| you don't overlook anything that you might regret, or | | | | 3 years with a penalty for an early payoff. The |
| that can cause you problems later: | | | | penalty is usually about the amount of 6 months worth |
| 1. Apply for a pre-approval to many different lenders | | | | of your mortgage loan interest, but this varies. You |
| to make sure you are getting the lowest rate possible. | | | | would have to be able to have some significant |
| When you do this, make sure that with the initial | | | | payment and interest savings on your refinance loan |
| pre-approval application, the lender is not pulling your | | | | to justify refinancing a mortgage loan with a |
| credit history. You will want to reserve your credit pull | | | | pre-payment penalty. |
| for the lender that you are most likely to work with. | | | | 3. When evaluating different lender offers, in the |
| You can decide that after you have gone through the | | | | mortgage loan pre-approval process, pay closest |
| preliminary pre-approval process with a few lenders. | | | | attention to the interest rates they are offering & the |
| Each time your credit is pulled, it docks your credit | | | | closing costs. These are the two biggest factors that |
| score just a little. If you have too many inquiries, it could | | | | will help you figure out which lender is right for you. If |
| keep you from refinancing your mortgage loan with | | | | one of these two factors is too high, it could offset the |
| the lowest rate possible. When you pre-apply for | | | | benefit of refinancing for you. |
| home mortgage loans online, most lenders or | | | | 4. Get your interest rate and closing costs in writing as |
| mortgage service companies will not initially pull your | | | | soon as you decide on a lender to work with. Get your |
| credit. Check for information about this on their | | | | lender to give you a commitment in advance of all of |
| website. They will usually tell you whether or not they | | | | the costs that will be involved with your loan. Find out if |
| are going to pull your credit. Also, if on the application | | | | the refinance loan you are getting has a pre-payment |
| you do not give them your social security number, they | | | | penalty as well. Sometimes lenders will leave out |
| cannot pull your credit. If, on the application, they ask | | | | important information like this, if they think it might scare |
| you to describe your credit, they are probably not | | | | you away from refinancing with them. |