This hub “Mortgage Refinancing- Why You Need To Refinance Your Mortgage Now” is written sequel to my earlier hub “Mortgage Refinance- Mortgage Refinancing Guidelines”.

I hope you will find the information useful.

Now, if there is a time to consider mortgage refinancing; NOW is the time. NOW is the ideal time to refinance your mortgage. The essence is to possibly enable you capture the lowest mortgage interest rate of your lifetime.

Why, you may want to ask?

The tide has changed. Today’s situation in the mortgage industry is so different from that of years back. The reason why you should refinance your mortgage now includes:

1) The demand for refinancing is high

2) The number of people processing mortgages is down

3) Uncertain financial state, coupled with high volatility and low liquidity of cash. This is as a result of the deepening global recession and financial meltdown.

4) Mortgage holding rates, which is below 5% is decreasing, this calls for a mortgage refinancing options,

The following points highlight some basic tips you need to know before you refinance:

1) Check the outlook for Rates

2) the actual documents you will need

Check the outlook for Rates

According to Keith Gumbinger, who works with HSH Associates, he opined that a 30 year fixed rate that will hover near 50% for the remaining balance of this year should be expected. And peradventure, the US economy improves; it might leap up to 5.25%. In this issue, when inflation goes up, simultaneously, rates will also rise up.

Also, it’s pertinent to know how you can qualify for the best mortgage refinance. I will share some basic mortgage refinance tips on how to get the best mortgage rates:

1) Fannie Mae or Freddie Mac backed loans

Fannie Mae or Freddie Mac together backs about 2/3 of all mortgage loans. Their take is that it will be a conforming loan and that you have a credit score of about 720 and 20% more of equity

In other words, if you have the above mentioned credit score and the other factor, so, it makes it easier for you to get the lowest rates on loans.

2) Living in a single family home will help boost your chances of refinancing by getting the best possible loan rates.

3) And if you did not take out a home equity loan or line of credit.

Needed Documents

You will need the following in order to get a very good mortgage refinancing estimate rates.

1) Provide a prospective lender with your FICO score (e.g. you can get this from Equifax)

2) An estimate of your home’s current market value (e.g. you can get this from real estate agent, check online or using appraisers)

3) You will need your recent month pay stubs

4) You will present 2 months of bank and other financial statements

5) Present 2 years 0f W-2s

And in the case of you being self employed, you will need to provide 2 years of tax returns with prove of self sustaining income.