If you are considering refinancing your mortgage but are unsure if taking out a new mortgage is a good idea with rising interest rates, there are a number of reasons to refinance regardless of the economy and save yourself money in the process. The best way to protect yourself from rising rates is to do your homework, research mortgage refinance information from a variety of lenders, and comparison shop for the best loan. Here is mortgage refinance information to help you decide if refinancing your mortgage is the right choice.

The majority of homeowners that refinance their mortgages do it to save money. There are several ways to save, regardless of interest rates. If you want to pay less to your lender in finance charges, the best way to save is by qualifying for a lower interest rate. If your financial situation has improved since taking out your original mortgage or interest rates are lower, you could qualify for a lower interest rate. Before you take the plunge and invest your time researching mortgage refinance information, you need to determine if refinancing is right for your situation. Here are several questions to help you determine if mortgage refinancing is right for you.

I. Mortgage Refinance Information: How Long Will You Keep Your Home?

If the possibility exists of moving in a year or two you may never recoup your expenses from refinancing the loan. The longer you plan on keeping your home, the longer you will have to realize savings and recoup your expenses. Recouping your expenses is just one aspect of refinancing; there are a number of costly mistakes that will keep you from the benefit of refinancing your mortgage. To learn how to avoid these costly mistakes register for a free mortgage refinance information guidebook.

II. Mortgage Refinance Information: Do You Have Pre-Payment Penalty?

Mortgage lenders often include penalties in their loan contracts for early termination of the loan. If you sell or refinance your existing mortgage and your loan has a pre-payment penalty, you could be required to pay up to six months worth of interest on 85% of the original loan balance to get out of your current mortgage.

III. Mortgage Refinance Information: How Much Will the New Mortgage Cost?

When you refinance your mortgage you will be required to pay many of the fees you paid when you took out the original loan. These fees could include origination fees, appraisal, survey, title search, points, insurance, and legal fees. Your closing costs alone could run as much as $3,000. These fees are why it is extremely important to research mortgage refinance information prior to applying for a new loan. Doing your homework will help you avoid costly mistakes.