Refinancing Your Home Mortgage- How long it can take and what that means

Interest rates are at an all time low, so it stands to reason that mortgage refinance would be at an all time high. Over the past few months as interest rates decreased mortgage companies who had laid off a significant portion of their work force discovered they were swamped with mortgage refinance applications.

This back log in applications gave customers interested in a mortgage refinance and opportunity to take advantage of something they never had before, 60 to 90 days of a guaranteed rate. Many companies used to lock in fixed rate mortgage rates for 30 days, 45 at the outside to allow for closing. But since the companies couldn’t guarantee they would be ready for closing within 30 days of pre-approval of the application the decision was made to extend this.

The only ones that really hurt from the backlog were those trying to refinance so that they could save their homes. Many of the companies that hold the note on those homes that are struggling have allowed for this if the owner can prove they are in the works for a mortgage refinance.

Those interested in refinancing shouldn’t be in a hurry and should consider all aspects before they decide to go ahead with the refinancing. If you are not trying to save your home it is not necessarily the best option, especially if you don’t plan on staying in the house for long. There are costs associated with a refinance just like there is a regular mortgage so that should be taken into consideration.

For most people the lower interest rates has been their gain in putting some extra money back in their bank accounts each month, only those with really good credit scores are getting the best rates right now so be sure you know what to expect when refinancing your mortgage.