With current rates at record lows, many clients are inquiring about refinancing their homes.

It's a great idea! However, be sure that you thoroughly read the guidelines and know what's needed before you spend the money.

Ask a realtor in your area for a broker price opinion or market analysis. This will save you the money of paying for an appraisal to see if your homes meets the banks requirements.

Choose the financial institution that works best for you. Keep in mind that many groups will offer low rates, but at an upfront cost depending on your situation.

Be sure that your closing costs are justified in the long wrong. In general, you should make up those costs associated with closing within two years. Keep in mind that if you plan to sell or move before that the upfront costs may not make sense.

Be aware of your equity.  Loan to value ratios are the biggest factor when a bank refinances your home. To change your interest rate or modify terms you'll need 5-10% minimum. To take out equity you'll need at least 20%.

Have you had a good experience in a recent refi? Any bad experiences?

Tips for Refinancing

How Much Equity Do I Need?