If you are in the process of refinancing your home mortgage loan, there are a number of mistakes that will rob you of your potential savings. Before you sign a loan contract it is important to do your homework and research mortgage offers to find the most competitive loan. Here are 3 common mistakes to help you avoid botching your new mortgage loan.

I. Picking the Wrong Mortgage Type

There are a variety of mortgage types, all tailored for a particular financial situation. Choosing the wrong type of mortgage would be a mistake that could even cost your home. Mortgages fall into two basics types with many varieties of each type. The basic types of mortgage loans are those with fixed interest rates and those with variable interest rates. Each type of mortgage has its advantages and disadvantages depending on the financial situation in question. You can learn more about choosing the right mortgage type for your financial situation by registering for a free mortgage guidebook.

II. Beware Excessive Fees

Many homeowners refinancing their mortgages focus only on finding the best interest rate. If you focus solely on interest rates you will overlook a number of lender fees and closing costs and could overpay thousands of dollars in fees. Excessive fees are also the sign of predatory mortgage lenders that structure their loans to take advantage of their borrowers. These predatory mortgage lenders often structure their loans to promote foreclosure. If you fall behind because of the way your loan is structured, the lender will foreclose and take your property.

III. Lose Your Home at Foreclosure

No one wants to lose their home; however, mortgage foreclosures are at an all time high in the United States. Much of this is due to the practices of a select few predatory mortgage lenders. The techniques predatory mortgage lenders use against you can actually work in your favor if you understand how to borrow. To learn more about structuring your mortgage to lower your risk of foreclosure, register for a free mortgage guidebook.