Top 10 tips for loan refinancing

Interest rates are once again falling to irresistible levels, which means two words are on the mind of millions of Americans: loan refinancing. But how do you get the best loan refinancing deal while avoiding some of the loan refinancing traps that plagued so many of the ill-advised refinancers of the housing crisis? Here are 10 ways to make sure you do your loan refinancing right.

Loan Refinancing Tip #1: Find the right rate. This is probably the most common motivation behind loan refinancing. Anyone who has a high fixed-rate mortgage and sees those rates dropping is naturally tempted to switch to a low fixed-rate loan. Or if you have an ARM, you might take advantage of the low interest rates to get a loan refinancing locked in to a low fixed rate for the life of the loan.