If you don’t have cash on hand to pay fees, you can get them tacked on to mortgage, paying nothing out of pocket for your refinanced home mortgage.

If you refinance and shorten term of a home mortgage, you will pay a higher monthly payment, but you’ll save a significant amount of money over term of mortgage in addition to paying off your home and building equity faster.

Standard mortgage terms run 15 years or 30 years. If you’d prefer a term somewhere in between standard terms, ask for a custom loan and designate a term that works better for you. Find a term that strikes a balance between a term shorter than 30 years and monthly payments lower than those of a 15-year mortgage.

If you cannot get a custom term, settle for a 30-year mortgage and pay more than monthly payment to pay off loan sooner. You must also negotiate no pre-payment penalty.

Where to go from here

1. Review your credit record with each of three credit bureaus: Equifax, TransUnion and Experian. Mistakes are common in credit reports, and you may be surprised at what you find: accounts that do not belong to you, balances that do not match your statements, an identity mistake or worse. Correct any bad information.

2. Compare mortgage rates and fees online among several finance companies.

3. Use a good mortgage calculator. Using refinance calculators is only way to determine which loan is better all-around deal.

Work fast, but negotiate hard to make a deal that works for you. The loan company wants your business as badly as you want a better rate.

4. Use equity as a down payment on an investment property or a rental.

5. Use it to consolidate high interest debt and possibly save yourself hundreds of dollars a month to put toward something else.

6. Use it to finance your education and increase your earning power.

7. If you live in an area zoned for this, you could finish a basement or area of house to rent out. You could create a separate living space or apartment on your property.

Just be careful to not do anything risky with equity in your home. If you can get a low enough rate, it may be worth taking that money and investing it somewhere else.

If you would like to view our recommended home equity loan lenders or get more information on home equity loans click here: www.abcloanguide.com/homeequityloan.shtml