Mortgage refinancing is the practice of renegotiating the terms of your existing mortgage, and replacing it with a new one which is more favorable to you.

Certain circumstances can make it advantageous to you to refinance your mortgage. These include a noticeable rise in the value of your property, a fall in market interest rates, or a dramatic increase in your existing mortgage's interest rate.

In these situations it can benefit you to refinance your mortgage, to either get cash out or to obtain a lower monthly payment.

Over the past few years many homeowners have taken advantage of low rates and flexible loan products and refinanced their homes. Of course, for some refinancing wasn't the most prudent move. But many other people benefited from market conditions and locked in a sweet low fixed rate mortgage.

And even today conditions are great for some property owners. Fixed interest rates are at their lowest level since 2005, and look set to drop further over the next year. So if you have an excellent credit score, stored-up equity or liquid funds, and a conforming loan, you could benefit.

But the big question is: should you act? To answer that you need to carefully assess your financial situation, including your current mortgage. And just as importantly you need to determine whether refinancing will actually save you money.

The common opinion is that refinancing to a lower rate always saves you money. But that is a flawed assumption. It costs you money to refinance, and can sometimes take you a few years to recoup the initial expense of a mortgage refinance. So you need to make sure the savings you will be gaining each month from a lower interest rate will more than offset those initial expenses. After all, there's no point in saving $30 a month if it'll cost you the equivalent of $200 a month in initial refinancing expenses.

Run a careful eye over the numbers before you embark down the refinancing path, and if necessary don't hesitate to talk to a trusted mortgage expert.

As the mortgage market continues to buckle under falling property values and stricter requirements, so homeowners are also suffering. I've talked previously about the different options these homeowners have. These include:
   - Improving your credit score and refinancing
   - Working with a mortgage broker to get competitive quotes
   - Negotiating new mortgage terms with your lender

But some people cannot escape their credit scores and high loan-to-value (LTV) ratios, no matter how hard they try. And while many lenders realize the benefit of working with struggling homeowners, some do not.

A great alternative for these property owners is obtaining an FHA loan. These are mortgages backed by the Federal Housing Administration (FHA), and they have criteria unique within the mortgage industry.

FHA loans are available for homeowners with an LTV ratio of 97% or less. Better still, FHA loans have no minimum credit score requirement! If your LTV is below 98% and you can verify your income, you are eligible for an FHA loan!

Maybe you've heard of this program before, and been put off by some common myths surrounding it: FHA loans require more paperwork; their rates are notably higher than regular mortgages; they take longer to get than a regular mortgage. All these are false.

So if you're struggling to make your mortgage payments, don't let idle hearsay or rumors stop you from securing your home. Look into a FHA loan today by contacting America's Lending Partners!

A lot of homeowners need to refinance because they are stuck with rising adjustable rate mortgages. But too many are procrastinating because of fears that the mortgage lender they choose will go bust. This strategy will cost you a big chunk of change each month, and more importantly put you at risk of loosing your home!

The solution is to go with a reputable, stable lender, or apply through a broker which can connect you with several different lenders of this kind. Do your research on the lender. How long have they been in business? how many branch offices and employees do they have? Do they have other income sources, like banking accounts, which can strengthen their financial situation? Once you've found one you're happy with, start the refinancing process.

Another common misconception homeowners have is that if their lender or servicing company goes bankrupt they don't have to pay their mortgage any more. This is wrong! Your mortgage contract will not expire if your lender closes their doors. If they do cease operations another company will buy your loan as a security either from them or from their investors. And if you haven't been keeping up on your payments that new security holder will send you into foreclosure!

Don't let the current turmoil derail your homeownership status. If you need to refinance go ahead and do it, as soon as possible. And if your lender is struggling, don't use that as an excuse to not pay your mortgage.

Property values today aren't as good as they were a few years back. But millions of homeowners are still sitting on positive equity, which they could use to achieve all sorts of goals. With mortgage rates still relatively low, and health care and education on the rise, there are still opportunities for some homeowners to use refinancing as a tool to a better tomorrow.

In addition, some homeowners are struggling to cope with their adjustable rate mortgages. Unless you've been living under a rock for the past few months, you'll have heard about the subprime mortgage woes. Falling house prices, rising interest rates, struggling hedge funds, and a lack of buyers has caught some recent buyers off guard. But even these people have more options than they might realize. Credit repair, saving up a down payment, and shopping for an FHA home loan are just three solutions.

At the end of the day, refinancing your home loan isn't as hard as it sounds. It's easier and quicker than buying a home, and even today requires little or no money down. There are many companies out there who can help you refinance your mortgage, and some who can provide you with multiple loan offers.

Educate yourself, stay positive, and be proactive. With the right approach and planning you'll be fine.

Forbes Magazine recently published its list of the top ten riskiest property markets in America. Their list is based on a number of factors, including loan-to-value ratios, local employment, historical demand, and metro size and relative affluence.

Cities in Florida and California make up all of the top five, while a few metro areas in the midwest also didn't fare too well. New York, Pennsylvania, Massachusetts and other states in the North East were in the clear. Here's their list:

1. Miami, FL
2. Orlando, FL
3. Sacramento, CA
4. San Francisco, CA
5. San Diego, CA
6. Phoenix, AZ
7. Kansas City, MO
8. Cincinnati, OH
9. Chicago, IL
10. Denver, CO

Following the implosion of the subprime mortgage market a lot of homeowners are re-evaluating their mortgages, and thinking about refinancing.

The good news is rates are still low, especially on fixed-rate mortgages. The bad news is home values in many metropolitan areas are gradually declining. Those property values aren't being helped by rising foreclosures, which weaken the values of surrounding homes aswell as the homes directly affected.

A small but growing percentage of people who bought property in the past few years are struggling to avoid foreclosure. If you're one of them you should contact your lender or mortgage servicing company. Talk to them and see if they can provide you with a loan restructuring program. They don't want you to foreclose, because they'll be burdened with a dormant property. So it's in both your interests to work something out.

According to the New York Times about $1 TRILLION in adjustable-rate mortgages are set to reset in 2007?

When it comes time to refinance your mortgage, make sure you're prepared. Preparing for a refinance can seem quite involved, but it's not as hard as it seems.

STEP 1: PAPERWORK
Get all your paperwork in order: including your original HUD-1 form, recent tax return documents, and your most recent mortgage statement(s). Make copies for yourself, and try to identify the key payment amounts, interest rates, and balances.

STEP 2: LEARN THE LINGO
Next, read up about the mortgage industry. Learn the terms and lingo. There are lots of good websites which can help you understand the industry. Some of them are listed at the bottom of this page.

STEP 3: FIND A GOOD PROFESSIONAL
Third, find a reliable mortgage professional, such as a broker or a mortgage planner. Check with trusted friends or family for referrals, or check online or in the phone book. When choosing a mortgage professional remember that trust and reputation are far more important than "getting the best rate". An honest broker or planner will get you a great deal. But someone promising you the best rate won't necessarily be honest with you!

STEP 4: NEGOTIATE
Now it's time for you to start working with your mortgage professional. Be prepared to negotiate, and keep alert. It's easy to get bored or loose track on what your signing. But doing so can be risky. And during your dialogs with your mortgage professional, don't forget what's at stake. While most mortgage professionals are considerate and helpful, don't forget this is a business deal for them, so they don't have all the power.

Be friendly and courteous, but don't be a push-over! You'd be amazed at how often you can shave down an interest rate or reduce a fee just by constructively working with your mortgage professional! And don't be affraid to ask questions, even if you think they are dumb. One of the best ways of learning about something is to ask an expert.

CONCLUSION
It's easy to refinance your mortgage. The harder part is doing it in an efficient and organized way. The more you prepare, the quicker the process will be, the more comfortable you will feel, and the greater your chance of ending up with the right mortgage to fit your needs. Good luck!

When it comes time to refinance your mortgage there are normally two avenues open to you: mortgage brokerage services or mortgage lenders. For most homeowners the differences are negligible. But in reality there are some important differences.

A mortgage broker is an individual or company which specializes in finding multiple loan offers on behalf of the customer. They find the most compelling loan quotes by using the business relationships they've established with different lenders.

A mortgage lender is a company which works directly with a customer. A lender, or lending institution, is normally a bank or loan originator which funds the mortgage.

Customers who work directly with a lender can often cut out some nominal fees which compensate a broker for their time and efforts in finding different loan offers. However, when you works with a lender directly, you do not have the option of shopping around. You are dependent on that lender's loan products, and on whatever they offer you. Often you'll get a decent rate and terms. But it's also possible you'd have done better elsewhere.

One tactic some prospective borrowers take is to negotiate directly with several different lenders. This strategy can be very time consuming and protracted. And comparing disparate quotes can be confusing, even for seasoned borrowers.

Mortgage brokers are often the best option, as long as you choose the right one. An honest broker can provide you with invaluable guidance and get you the best loan for your financial needs. And the long-term savings you gain via such a broker will more than make up for their nominal fee after few years.

When choosing a broker ask them for customer testimonials. Also, check out their state licenses, and verify them with the Better Business Bureau. Many companies now have a web presence through which you can submit an online application. Just make sure your data is being submitted via a secure form. Some, like America's Lending Partners, also provide free advice and information via their website, which can help educate you about the mortgage process.

Ultimate it's your call on which path you choose. Just make sure you select a trustworthy company who has your interests at heart. With these factors in mind you're bound to succeed.

The media has recently been abuzz with talk of subprime, prime, and Alt-A mortgages. But many people don't known what these esoteric industry terms mean, and how they impact mortgage refinancing. Here's a summary.

Subprime: a grade of mortgage geared towards people with challenged credit, or high loan-to-value ratios which can't be reduced via a hefty down payment. Subprime mortgages make up about 19 percent of all American mortgages, and their availability via adjustable rate mortgages have largely fueled the property boom of the past several years.

Alt-A: one rung up from subprime, Alt-A mortgages are designed to assist people who have good credit and a decent loan-to-value ratio, but who can't prove a stable income. Typically, an Alt-A candidate will be a credit-conscious self-employed individual who has a decent amount of liquid assets.

Prime: the Cadillac of mortgages. Prime mortgages are offered only to those borrowers who have good credit, solid proof of income, and lower loan-to-value ratios. They tend to yield lower interest rates, because this type of borrower is deemed a low risk by financial institutions and investors.

Recent market trends have hit the subprime sector hard. This is because falling property values and concerns over a spike in foreclosures have made investors wonder if they'll be enough credit to fuel their financial deals. This has caused a large drop in demand for mortgage-related companies and funds, which has in turn drained confidence in the mortgage industry even further.

For a while it seemed like the Alt-A sector would be spared this fate. But as property values and housing demand have fallen, some Alt-A borrowers have fallen into the growing subprime sector. Now some Alt-A oriented lenders have begun to feel the pinch.

The prime sector has also been under scrutiny because of recent market anxiety. But prime borrowers typically have very low rates of foreclosure, which are usually only related to sudden medical problems or a loss of employment. So these folks should be relatively safe, once the wider market forces have calmed down.

Over the past couple of decades credit scores have become an increasingly important aspect of obtaining or refinancing a mortgage. And with the mortgage sector now enforcing stricter loan requirements credit scores have become a major factor in determining whether a person can obtain a mortgage.

But the science of improving credit scores is complex, and a mystery to most. Even people who think they know how to improve credit scores are often wrong. This Squidoo lens doesn't claim to contain infallible information on the topic of consumer credit, and all content on credit scores should be taken as advisory information only. But these suggestions might help improve your credit score and in turn allow you to find a better home loan refinancing deal.

DO pay down your auto loan, personal loan and credit card debts. But don't necessarily pay them off one by one in their entirety. In fact you might be better off leaving a nominal balance on each account.

DON'T close all of your credit card accounts, or even several of them all at once. Doing this can actually affect your score negatively. If you want to reduce the number of cards you have, close accounts down slowly over time.

DON'T close your oldest credit card accounts. These establish the longevity of your credit history. Closing them down will wipe valuable historical information from your credit reports and negatively affect your score. If you must close cards down close the most recently established ones.

DO check your credit score and report frequently. Fraud is a growing issue in American consumer affairs, and by not checking your score and report periodically you are allowing any fraudulent activity to go unchecked. And this can be a nightmare to fix.

DO contact the credit bureaus - Equifax, Experian, and TransUnion - and get your credit report information corrected if it's wrong. While they might not be a major factor on credit score calculations, mistakes relating to employment and residence can make lenders question the validity of your application.

DO contact financial companies or lenders who you've borrowed with in the past, and who have placed negative information on your credit report. Negotiate with them and see if they'll remove it. If it occurred several years ago and has long since been resolved they often will. This can add a major lift to your credit score.

Because of all the mortgage turmoil, jumbo loans have been in the news recently. But what are they? A jumbo loan is a very large loan. In mortgage terms, they fall outside conventional loan limits, and so they can't be bought outright by government-backed entities such as Fannie Mae and Freddie Mac. That means they carry a higher investment risk, but potentially greater return than a conventional mortgage. Fannie Mae and Freddie Mac can buy a percentage of a jumbo loan, just not all of it. The remainder, or the full amount if they don't buy any proportion, must be bought by private investment companies.

Generally, a loan worth at least $417,000 is a jumbo loan. That minimum value is higher in Alaska and Hawaii, where a jumbo loan must be worth at least $625,000. Jumbo loans are particularly popular in high demand, high population states like California. That's because property values are higher, and more borrowers have to go beyond conventional mortgages to purchase their desired home.

The recent market jitters have reduced demand for jumbo mortgages, so it's becoming harder to find lenders who will fund such loans. However, with good credit, proof of income, and a decent down payment they can still be obtained by those who need that extra loan amount.