First, you have to think about the refinancing plans and ideas/work arounds that mortgage lenders will throw at you in case you want to lower your rates. Lending companies won’t give you something "good" without certain qualifications.

So, with that said the next thing you might want to do is really decided if you "need" to refinance your mortgage. A good number people think that refinancing is an easy task simply because they have a built up history with a company. They think hey I've spend x amount if years with you so you owe me this in return. Refinancing doesn't always mean lower rates and people need to get this through their heads before putting all their eggs into one basket (it's not for everyone)

Now, I'm not saying refinancing isn't a good option it's a great idea but it just depends on what type of mortgage you have. That alone will be the main factor that discerns whether or not refinancing is a good option for your personal situation.

There was a time when lending companies needed to do conduct a detailed background check on your properties before lowering your rates but now with the economy the way it is most companies are willing to work with you so they can have your business (take advantage of it).

So ask yourself something (or your spouse). Is it really time to refinance is this something we really need to do? What is your strategy what are you trying to do here?

Perfect example, do you want lower rates so that you can still cash out and pay off other debt or do you need just a basic refinancing plan?

Most common reasons why people want to refinance

1. Better Credit Rating

Most people can't obtain low interest mortgage so they bear to suffer with elevated rates. There are those that are lucky and get lower rates even with bad credit

Traditionally people try to pay their loans back/on time in hopes of building their credit and this does work but sadly it doesn't work fast enough for most. Not to mention most can't afford but to pay the minimum amount due each month.

2. Lower Interest Rate (Pocket Money)

Some people want a better deal in the end they want to cash out in the end and use the access money for other things like paying off other debt, buying a new car.... Etc.

Experts say that getting home equity is the better option (in our current economy) because the rates are cheaper.

For instance, have a loan of $40,000 on a $75,000 home. You consult with your spouse or financial advisor and you come to a conclusion that a lower interest rate is the way to go. Which will allow you to allocate $7,000 to pay off your car loan (7k is just an example figure)

Now that you have a little understanding about the benefits of refinancing loans its time to sit and see where you stand financially and path a way for your future.