3. Once you have received a few mortgage loan offers, talk to each loan officer and find out if you can negotiate with them for a slightly lower interest rate than they are offering you. Once you have received a few offers, you should have a pretty good idea of what kind of interest rate you can expect to get, realistically.

When refinancing, there are a few factors that are important to be very careful about. If you overlook an important detail like interest rate or closing costs, it could make refinance hardly worth doing. You can save yourself potentially hundreds a month in unnecessary interest payments if you make sure you are getting absolutely lowest rate possible.

If you find yourself with a lot extra debt, you could take advantage of a cash-out refinance loan. With this type of loan, you add on an amount to your home loan, refinance entire thing at a lower interest rate, and then take “extra” money out and pay off your debt. This will allow you to reduce amount of debt you owe (because interest rate will be lower), and at same time, reduce amount of monthly payment.

Most experts agree that you shouldn’t go to trouble or expense of refinancing your home if you don’t intend to stay in it for at least three years. Otherwise cost of process would likely be more than overall savings.