How Do I Refinance: loan refinancing advice and links

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Welcome to How Do I Refinance.com, the website dedicated to loan refinancing. Here you will find free, useful information and smart advice for American consumers looking to refinance home loans, auto loans, credit cards, or personal loans.

Almost every adult in America has some sort of loan, and many people owe money to several corporate lenders. In today's society it's almost impossible to get by without financing assistance. But there's an art to juggling large debts and getting the most from your money.

Spending smart and frequently evaluating your loans gives you financial leverage, and helps you to save money too. By refinancing your loans at the right time, and at the right institution, you can get better interest rates, and avoid paying unnecessary interest fees to lenders. In short, you can lower your monthly payments, sometimes by significant amounts of money. You can then use your reclaimed money to consolidate other debts, save for a rainy day, or just spend on fun things and enjoy life.

Let us guide you through the refinance maze, and give you the facts you'll need to save money.

Refinancing Preparation Steps

Careful management of your finances for the several months before attempting a loan refinance is vital. Having a regular income, avoiding bankruptcy, and paying your bills on-time will all help improve your FICO score, and establish a positive trend in the eyes of lenders.

Good lenders are often cautious of lending money to people who might not pay them back. Foreclosing on a loan is never an attractive prospect to a lending institution, so when they are asked to refinance your loans or debts many will naturally be very careful to check your finance history and review your spending patterns. While some lenders do target people who are on less stable financial ground, they sometimes don't have your best intentions at heart.

So don't give lenders the chance to turn you down, or worse still take advantage of you. You have the power to influence how lenders see you, and to get the best refinancing rate available.

For more information review our Refinance Checklist. Once you are comfortable with your situation, read our Step By Step Guide to discover the finer points of loan refinancing, and find out what to expect.

Refinancing options

There are all sorts of refinancing loans. Some are available to all, while others are only open to consumers who own some form of collateral. Home owners traditionally have the most refinancing options, especially when they have positive equity in their home. Positive equity occurs when a home is worth more today than it was when a home owner bought it. Even in today's struggling market, many home owners still have positive equity. And rates are still at historic lows. That means home owners with good credit, positive equity and a bit of money for closing costs are in a great position to save money. Use the free services of one of the many free mortgage aggregation services to get offers from several lenders who'll compete for your business.

And even renters have refinancing options. Refinancing auto loans and personal loans often require only a modest one-time fee, which can be quickly recouped. And those looking to refinance their credit cards can often take advantage of great consolidation deals that many lending institutions offer.

Once you've reviewed our Refinancing Do's and Don'ts, click on one of the links below for more detailed refinancing information:

Understanding the Terminology

There are many terms related to loan refinancing, and to personal finances and property ownership in general. For those new to finances and refinancing many of these terms can seem confusing and overwhelming. But don't worry. We have a helpful Glossary to explain all the different terms and phrases you'll encounter. From Abstract of Title to Zoning Ordinances and everything in between is covered.

Credit Scores

When refinancing a loan, it's crucial to take your credit score, also known as your FICO score into account. It's not just your finances that can have a huge impact on your ability to consolidate debt or reduce monthly loan payments. Every lender uses a consumer's credit history and FICO score to decide if they are worth lending money to. Though laws exist to protect consumers, lending institutions can still use FICO scores to approve or decline a loan request.

But even people with bad credit or no credit have options. Don't accept the word of the first bank or lending institution you talk to. Shop around and compare refinance offers.

Just as importantly, identity fraud is on the rise. American consumers are increasingly being targeted by criminals, who steal their identity and credit card numbers, and use them to buy all sorts of goods and services. The net result is that the criminals often get away, leaving their victims with the bills. Frequently checking your credit history is the best way of keeping on top of such despicable activities.

Did you know that you can check your credit report for free?

Many states have laws requiring that when a company checks your credit history you can receive a complimentary copy of the report they receive. And now the three credit bureaus, Experian, Equifax, and TransUnion, participate in the AnnualCreditReport.com website. Consumers can use this website to request a free copy of their credit report once each year from each credit bureau. For more detailed credit reports and FICO scores contact each of the credit bureaus directly. For a small fee they'll provide you with everything you need to know to check your FICO score and fix any historical errors. With so many great tools available, there's no reason to delay in checking your credit history, and fixing any reporting mistakes.