When is good time to Refinance the Mortgage?

In general terms, you should meet one or more of the following conditions before you consider refinancing your mortgage:

Mortgage interest rates are falling. 
The value of your home has increased significantly in the market. 
You've been making payments on your original mortgage to 30 years for a period less than 10 years.
In an environment where interest rates are falling mortgage, refinancing can offer to owners of a house two potential benefits which can help reduce total cost of your loan over time: 
Reduce your monthly payments while keeping the same term or a similar payment from your original mortgage. 
Decrease your time to pay while maintaining the same or a similar payment to your original mortgage. 
Capital set in your home 
Refinancing can help you build wealth from your home. For example, refinancing could make sense for cash if your home has increased in value or have a low mortgage balance, compared with the current value of your home and have a high level of consumer debt that you would like to pay. 

The first years of your mortgage:

In general, refinancing makes more sense in the early years of your mortgage, where payments are primarily to cover the interest. In the last years of your mortgage, when you begin to pay more principal interests may be better for you to keep the original loan. Remember that the refinancing will give you a completely new mortgage to pay and will take you back to the top of the cycle in which you're paying mostly interest. 

Refinance or get a loan secured property?

As a rule of thumb, if you've been making payments for less than 10 years in a 30-year loan and mortgage interest rates have fallen, it could be beneficial to consider refinancing. If you've paid your loan over 10 years, a real estate secured loan might be a better option to pay debts in cash or convert the assets you have in your home.

Maybe you need a little extra cash for a home remodel or college tuition, or perhaps you simply want to save some money. Whatever your reason, refinancing your home loan can be a smart move as long as you get a low rate. Here are some simple tips that can ensure you get the lowest rate possible on your Home Refinance Loan:

Clean up your credit

Lenders use your credit score as one tool for determining your interest rate. In general, the better your score, the lower your rate. Before applying to refinance your mortgage, check your credit report and look for any errors. If you find a mistake that's negatively affecting your score--such as a payment marked as "late" when you sent it on time, or a line of credit that doesn't belong to you--be sure to correct those errors.

Shop around

You might not necessarily get the best deal from the same finance company that holds your mortgage loan. Make sure you check out offers from other lenders. You can do this by submitting your application to multiple lending companies, or by hiring a mortgage broker that will check out numerous lenders for you. To get the largest variety of offers, try different types of companies, such as banks, credit unions, online mortgage lenders and local mortgage brokers.

Negotiate

Once you've received a few offers, take the time to negotiate with lenders. Let them know that you have other options and that you're looking for a great deal. Mention their competitors so they know you're serious about your loan, and be prepared to walk away if the loan company won't give you the best rate. However, once you find a deal you like, ask the lender to "lock it in." Interest rates change daily, and locking it in guarantees that you still get a low rate even if rates soar the next week.

Remember: the interest rate is only part of the expense of refinancing. In many cases you'll have to pay fees, points and other extra charges. You can lower the cost of your loan by asking to have these fees waived or lowered.