Inman: 8 Things to Do Before Refinancing

• April 23rd 2009

by Mark Wellborn

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Refinancing seems to be the latest fad in this precarious real estate market. However, before you jump at the chance to refinance at a significantly lower interest rate, Inman points out that there are at least eight things that you should in preparation.

1. Look at the interest rate you have on your current loan, and see if you are going to save a good chunk of money by refinancing.
2. Get an appraisal done on your home to find out how much it is worth (probably not as much as the last time you had it appraised).
3. See how far underwater you are with your current mortgage.
4. Find out your latest credit score and get your credit history.
5. Shop around for a loan and find the best possible lender.
6. Find out if your second lender will subordinate to your first lender.
7. Calculate not only the fees you will have to pay, but also how long it will take to pay yourself back the cost of the refinance.
8. Before you call the lender, make sure that you have copies of your W-2, a current paycheck, copies of your last two federal and state tax returns, copies of your bank accounts, retirement accounts, and other assets.

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/inman_8_things_to_do_before_refinancing/832.