Should you refinance your home?

In the current market getting your house refinanced could be challenging. With all the new credit report and credit score requirements it might be tough to get it done. Sometimes it is necessary to refinance depending on the terms of your current loan. Here are some tips on whether refinancing your home is right for you.

· Check your free credit reports
With the access for free credit reports on the web go ahead and pull a recent copy of your credit report to see where your credit scores stand. This will allow you to be prepared for what ever a lender throws at you.

· How long will you stay in your home?
When you refinance your home there are lots of third party costs involved. When all the costs involved it will take a while to recoup the cost for the refinance. Typically you need to stay in your home at least 10 years in the “Rule of Thumb.” If you are not staying in your home for at least 10 years, it may not be worth refinancing.

· Lower your interest rate.
When you decide to refinance your home you should be able to lower your interest rate a minimum of 1.5%. I recommend 2%, but 1.5% will work as well. Otherwise refinancing your home is not worth the cost involved.

· Equity in your home
During the finance process you need the equity to roll in the closing costs. If you don’t have the equity to refinance, then you have to pay the cost out of pocket. So you might get with your lender to make sure you have the equity to refinance to begin with.

· Will you qualify for a loan?
With all the changes in the current lending market, the loan programs that were once available might be gone now. So if you require some type of creative financing, like limited doc loans you could have issues getting it done. Get with a reputable mortgage loan lender to see where you stand.

· Refinance at the first of the year.
When you refinance your home you should do so at the first of the year. The reason is the mortgage lender will only have to collect taxes on the refinance for the first of the year. The later during the year refinance the more the lender will be required to collect in taxes. This ultimately will drive up the cost of the refinance the longer you wait. So make sure you refinance your home between January and March.

About the Author: Mike Clover is the owner of is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

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Disclaimer: This information has been compiled and provided by as an informational service to the public. While our goal is to provide information that will help consumers to manage their credit and debt, this information should not be considered legal advice. Such advice must be specific to the various circumstances of each person's situation, and the general information provided on these pages should not be used as a substitute for the advice of competent legal counsel.