Think carefully and do research before you decide to refinance.  The touting of all-time low interest rates is causing many homeowners to consider the savings.  However, there are several key factors to consider before you invest in the process.

Most importantly, many homeowners do not have the equity necessary to complete a refinance.  Many are paying the $500 appraisal fee only to find out their home does not qualify and that the fee is non-refundable.

Have a realtor do a Comparative Market Analysis for you at no charge before you begin the process. While you may think your home is worth a certain amount, it's necessary to confirm that it is thru careful research of the most current market. You need at least 5-10% equity in most cases to refinance.

Also, be aware of stricter lending standards.  This is especially important for those that are self employed.

Finally, be sure to go with a company you trust and that can be held accountable is a second appraisal is needed. And definitely consider when you'll break even after the closing costs versus your estimated time to remain in the home.

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