One of the most interesting activities during the refinancing process is when you are shopping for a home mortgage. This is the time when you get to meet and speak to various people, and discover the options that is available to you. This is also the time where you do your homework and make comparisons between different home mortgages.

A prerequisite for you before making these visits is to have the information on your current loan ready at hand. You should know the portions of interest and principal that has been paid, and the remaining mortgage loan term that you have left. Apart from that, it would be advisable for you also to also obtain your prepayment penalty from your current mortgage lender, so that you can accurately determine your total refinancing cost.

One of your initial considerations would be to approach your current lender and let them know that you want to refinance your mortgage loan. If you have been a good paymaster, they will want to retain your business, and will work out a good home mortgage for you. More importantly, they may be willing to waive your prepayment penalty to avoid you taking your mortgage elsewhere. This in itself will save you a lot on refinancing costs.

When you are seeking rates or home mortgage packages from other lenders, be sure to enquire on any specific restrictions or requirements placed on their mortgage lenders. For example, certain lenders require their borrowers to take up private mortgage insurance which will add up to the cost of refinancing in the first place. Others may request for cash reserves of up to six months, which may be a challenge for certain people.

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