Refinancing of mortgage tends to be an uphill task due to high rates of the mortgage. But there are ways to go about this effectively, especially now that mortgage analyst has predicted that in coming years the rates will tend to rise higher than it ever has.

With this, we bring you various practical measures to help you successfully refinance your mortgage. It is important to know that you have to be willing to dive fully into these tips to benefit maximally from them. They include the following:


Although rates are on a steady high, over the course of a year, they really do not increase ridiculously. This does not mean that they do not increase at all. This means that as soon as you decide to refinance your mortgage, you have to make quick steps because the rates of the mortgage would likely never go lower than it is at the moment.

Make sure that you have made adequate researches as well as comparing the pros and cons involved.


To be able to get on a mortgage, you have to make sure that your credit score is kept in shape at all time. This will make you qualify for the rate that any mortgage has to offer. So keep an eye on your credit at all times. Some of the measures you can take to work on your credit score include checking the credit report for errors, paying off bills at the time due, and as much as you can keep a distance from the limit of your credit.

Keep an eye on the credit score at all times, and make sure you do not make moves until you are qualified for a mortgage rate.

You cannot make moves at a mortgage if your credit score is not right. So make sure you take your time to work on your credit score, keeping it at a rate where you can qualify for the next mortgage rate.


This is one of the best ways to save money when dealing with a mortgage rate. There are two ways in which you can benefit from short term refinancing. If the rate on the interest is much lower than a fixed loan rate for thirty years is one way. Another way is that you will be able to save more money by paying less interest over the span of the loan.

Refinancing will enable you to pay less for the interest rate of a mortgage


Using pay points on your mortgage simply means upfront money payment, and this will help you lower the interest rate permanently. Before the expiration of every loan, there will be always an option of pay points, and if the additional cost sits well with you, then you can use the pay points.

Pay points work in such a way that 1% of your loan is one pay point. The money you have to pay to seal your rate solely depends on the interest rate available in the market at that point in time. In situations whereby the market is volatile, the tendency is high that you will have to pay more to buy down the rates.

For stable markets, the reverse is the case. So in this situation, the best thing to do is to pay attention to the market and take advantage of when it stabilizes. With this, you will be able to pay less and save yourself more money.


For people who are worried about the interest rates fluctuations and home equity line of credit, making use of a fixed rate product will help you seal a new rate, by this your monthly payment can be more predictable.

For this kind of option, switching to HELOC for a fixed rate is advisable, and that can be done by calling the bank. However, there is still no certainty that the rates will not increase later.  Another effective way to go about this is by refinancing the first mortgage and wrapping the second mortgage with it. You should take note that if you eventually refinance to a higher rate all of these would prove to be ineffective in the long run.

Cap: Call your bank and make inquiries on how you can switch to HELOC.


Although rates drop is very rare, you can look to take advantage of very low rates before they eventually rise. A good way to go about this is by not locking in your rate at the time of application. Watch the activity of the market for as long as possible, and you can take the time to keep your credit score high. This would also make you avoid a backup in refinanced applications just in case the rates drop abruptly.

Keep an eye on the market at all times to benefit from low rates and a stabilized market rate

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