11 Do’s and Don’ts of Refinancing


If you own a house, it’s not uncommon to receive offers to refinance your home. Sometimes refinancing can really help your bottom line by saving you money on your interest and helping you pay off your home loan sooner. Other times, refinancing your mortgage can make your financial situation more difficult. The following are some things to consider if you are thinking of refinancing your home loan.


  • Make sure the new loan will have a lower interest rate than the old loan.
  • Watch out for scams. Beware of anyone who wants to consolidate all loans into one mortgage, sell your home in order to buy it back, or save you from foreclosure.
  • Check your credit report for errors before refinancing.
  • Apply for other loans or lines of credit right before financing. This will make your credit score drop significantly, leading to a less-than-ideal interest rate.
  • Shop around for the best interest rates.
  • Find out if you will have to pay a fee for paying off your loan early.


  • Refinance your home for more than it is worth.
  • Refinance just to pay off an unsecured debt like credit cards.
  • Refinance because a debt collector is pressuring you to refinance so they can collect more money from you.
  • Trade your bank loan for a loan from a finance company with higher fees, extra insurance, and other costs.
  • Assume you will get the best rate at your local bank because you happen to be a long-time customer. It’s worth it to look around.

What To Do Next

If you are considering refinancing, why not talk to a company that focuses exclusively on home loans? We are an independent mortgage banker with over 30 years of experience helping people find the right loan for their home.

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