A refinance is just as easy to get as your first mortgage... right?

St Paul, MN: Many people think that refinancing is easier than buying a home for two main reasons:

1) you already have a loan on the home, you make your payments, so it should be easy to refinance.
2) your current mortgage lender already has all their information, so they with easily refinance you, and they are the best place to call **

Sorry... Not true on either count.

There are many factors that might make it hard to refinance:

First, understand that no matter who you call for the refinance - even your existing lender, you have to go through the full underwriting process again. With that said;

- Your financial situation could have changed. Do you have the same job, same income? Better or worse? How about credit. Better or worse?
- Mortgage loan Underwriting guidelines have changed. The crazy days of every getting a loan are long gone. Be are back to old school traditional financing guidelines. Did you buy the home on a program that no longer exists... like a no documentation loan?
- With all the foreclosures, your properties value probably went down. How does that play into your refinancing options?

Most people refinance for three main reasons.

1) Smaller payment
2) Shorter term
3) Cash out / consolidate debt

The good news is that mortgage rates in MN and WI are amazingly low right now, and lenders are still providing home loans everyday. If you are thinking of refinancing, but have been scared away by thinking you can't for some of the reasons listed above, you are making a big mistake.

Contact a local mortgage company with a NMLS licensed Loan Officer. Fill out a full application, and let them review your situation.

You may be very happy with the answer!

** WORD OF CAUTION: Many people make the mistake of just calling their existing lender. Almost exclusively, EVERY OTHER lender will usually HAVE A BETTER DEAL for you. Be sure to CALL MORE than just your current company.