With interest rates at a historic low, now is definitely time to take advantage and look into refinancing Home here in Morris county.... If you have been thinking about refinancing your mortgage, there are a few things you need to take into consideration before making your final decision.

Although rates are low right now, the present economic crisis has caused a lot of lenders to reduce the amount of loans they give out. This is a drastic change from the last few years when almost anyone and everyone was eligible for a mortgage. If you are figuring out how to save on your mortgage refinance, its vital to make sure you do your homework and get your facts right.

First, look at your loan-to-value ratio. In a no-cash-out refinancing (where the amount of your new loan doesn’t exceed the balance of your existing loan, plus points and closing costs, if applicable), you may be able to borrow as much as 95% of your home’s value. However, if the value of your home has fallen below the amount of your existing mortgage balance, you may not be able to refinance at all. This sadly, has been the case for many homes. But you may be able to proceed through the American Recovery and Reinvestment Act of 2009′s Home Affordable Refinance program.

The major advantage of refinancing to a new lower interest rate for your  home mortgage in Morris County, you will save a substantial amount on your monthly mortgage payment. This is of course why most people choose to refinance their mortgage. Keep in mind however that there are going to be costs involved with refinancing such as closing costs, points, and possible appraisal and attorney fees.

Do your research and shop around for the best refinancing interest rates. All banks are not created equal, some banks and financial institutions charge higher rates than others. Normally, the smaller Community Banks and Credit Unions are more consumers oriented and charge lower rates.

Last but not least, when shopping around, look and compare interest rates and points versus no points before you refinance. Look out for embedded points included in the closing costs. Some lenders will include points in the closing cost without necessarily actually quoting these costs as points.

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