Choose your broker
Selecting a broker is much more than just using the Yellow Pages and finding a mortgage broker. When you are going for a home mortgage refinance, you should look for a broker or lender who specializes in this type of loan. In addition, your broker should be willing to work with you in order to obtain the best fit for your financial situation and future plans for the loan proceeds. For example, a loan that is intended to clean up several old debts with little cash changing hands will be handled differently than a refinance that is intended to renovate your house.
Clean up your credit history
Reviewing and upgrading the entries on your credit file will often result in a home mortgage refinance that can cost you thousands less in interest fees. Even the structure of the loan can be different when your credit score ranks in the top level of borrowers in the United States. Check with each of the major credit bureaus and remove any inaccurate information by working through procedures available in many places on the internet. This is work that you can do for yourself. It does not have to be done by an attorney or credit clean-up specialist.
Borrow only what you need
Unless you are an unqualified consumer, once you make up your mind to obtain a home mortgage refinance, you will likely be tempted to add a few thousand dollars here and there to the amount you need, just in case. You may even inflate the figures so as to get a little spending money. The problem with this process is that you are inflating the amount that you are borrowing and paying interest on without a clear plan in the beginning what your plan is. It is much too easy to see five or ten thousand dollars just trickle away without a clear understanding of where it was spent.
If you are not absolutely certain you will be able to make the monthly payments on your home mortgage refinance, you would be better not to borrow the funds against your home. If you default on a mortgage loan, you run the risk of losing your property through foreclosure or sheriff's sale. Structure your payment amounts at a level that you can afford and at a time of the month when you can now make the payment. Then consistently pay what's due in full and on time.
Once you receive the cash from your home mortgage refinance, you should be wise in the spending of the funds you have received. Do not give into the temptation to buy something a little more expensive just because the cash is there. You will end up with not enough money to finish the remodeling project if you keep adding in extra items without realizing savings in other items to offset the increases. You are likely to have some unexpected costs in any large project anyway, so you have to plan ahead for those items.