By Sean A. Kelly

You often hear about mortgage refinancing. You’ve heard your parents talk about it and your neighbors are doing it. So you wonder why it is such a big deal for a lot of people. Your house is probably your most valuable asset and you’ve probably worked your heart out to be able to purchase one in the first place. You also know that by getting a mortgage refinance, in essence you will be getting a new loan by securing your home in order to pay off your first loan that was secured by the same property. What you do not know is how do you find out when is the best time for you to be refinancing your mortgage and how do you get the best rates.

You will need to know when will be the best time for you to be getting a mortgage refinance so that you can totally enjoy the benefits without losing more money than what you could actually be paying for. Before deciding to refinance your home, it is advisable that you find out what the current interest rates are especially if your first mortgage is an adjustable rate mortgage. Do a little bit of research, call up your current lender and several other banks and inquire about the current interest rates for second mortgages. Compare the rate with what you are paying with your existing mortgage. Is it less or more? If the current rate is higher than your existing rate and is showing signs of getting even higher, you might want to delay getting a second mortgage. But if the rate is significantly lower by at least half a point, it would be a good time to do so. If your current rate is also significantly higher than the current rate, it is a good time for you to refinance your home to a fixed rate mortgage.

A low interest rate is definitely tempting but it should not be the only consideration you take when deciding if it is the best time for you to put out a second mortgage on your home. Most mortgage refinancing help experts would agree that if you are not planning to move out of your house any time soon or if you have already built up at least 10% equity on your home, getting a mortgage refinance is recommendable. This is because when you apply for a refinance mortgage, you will only have to pay for the balance of what you owe and at the same time you can cash out on the amount that you have already paid or cleared. This way you will have some extra cash in hand for you to probably upgrade your house to increase its market value.

You should also consider researching the best rates that you could get for your refinance mortgage. One sure-fire way to get the best deals on interest rates is if you refinance your home with the same lender that granted you your first mortgage. If you have been a good paymaster and have made all your due payments in time, your lender considers you to be a very good investment. They will be less likely to simply let you go off to a rival lender. Keeping your business will be very important to your lender and they will most likely offer you the lowest interest rate in order to entice you to keep doing business with them. But do keep your options open. Sometimes other banks or lenders do offer lower interest rates so shop around for the best deals before you decide to go with one.

If you are asking yourself the question, ‘Should I be refinancing my mortgage at this time and will I be getting the best rate?’ you should definitely be conducting a thorough research in order to get the best deal you can. After all, one of the most important points of refinancing is for you reduce your monthly payments as well as interest rates. So make a little effort and shop around not necessarily for the lowest rate but the best deal.

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