Neither one of these statements is entirely correct, and it can be extremely difficult to receive unbiased and accurate information about the refinancing decision and process. It is our desire to offer you a clear, concise guide to help you get rescued from that sea of refinancing confusion. This report has been designed to provide unbiased information that will help you make an educated decision about whether or not to refinance your home mortgage.

There are some situations in which a refinancing decision should invariably be made. If you are able to negotiate a "no-cost" mortgage (you pay no points or closing costs), and if the new mortgage rate is lower than your existing rate, than refinancing your loan would certainly be of financial benefit to you. If the remaining mortgage balance, including points and closing costs, can be refinanced at a reduced monthly payment, and still be paid off within your existing mortgage payment term, then refinancing would be highly advisable. If you need extra cash for a home equity or auto loan, and the mortgage rate is lower than alternative loan rates, then refinancing is probably the best choice. Lastly, you can generally count on it being time to refinance when your new mortgage rate is at least one to two points lower than your existing rate, and you plan on staying in your home for at least three to five years.

Another common misconception about refinancing is that if the new rate is not at least two points lower than your existing mortgage rate, then refinancing is not worth the time and trouble. In many cases, especially if you are planning to stay in your home at least three to five years, even a one point reduction can make an enormous difference in your overall home mortgage cost. In addition, with the constant technological advances in the mortgage industry, obtaining a mortgage loan or refinance is now faster and easier than ever before. If you have any confusion or apprehension about your refinancing decision, an Allegro Lending Source mortgage consultant will happily consult with you at no charge or obligation.

To accurately sum up your refinancing decision, you need to thoroughly consider the following factors:

1.The amount of reduction in the mortgage interest rate
2.The amount of reduction in the monthly payment
3.Any prepayment penalties on the old mortgage
4.The amount of closing costs, including any points, loan origination
fees, application fees, inspection fees, appraisal fees, title insurance,
mortgage insurance, etc.
5.The number of years you plan on retaining your home

You will receive back the old note that you signed, the mortgage contract, and your lender will file a Mortgage Record Change. You will sign a new note and mortgage contract which your new lender will record. No money will pass through your hands, unless you borrow more than your old mortgage balance. However, you must pay for points and closing costs unless you finance those as well as the old mortgage balance.

You need to expect that your home will have to be appraised again, and possibly inspected. Your credit history will be reviewed again, and there will probably be changes in your mortgage and title insurance.

Of course money doesn't just grow on trees, but if it is truly the right time for you to refinance, then with the money you will be saving after twelve to eighteen months, you should begin to feel like your money trees are in full bloom!

The Personal Loan Consultants at Allegro Lending Source are trained to take care of all those details for you, and we will gladly meet with you at your convenience to discuss your specific refinancing situation. This consultation is absolutely free, and there will be no obligations or salespeople hounding you if you decide that it is not the right time for you to refinance.