By
eHow Personal Finance Editor
Difficulty: Moderately Challenging
Things You’ll Need:
- A copy of your mortgage note, which has information on how often your rate will adjust
Step1
Find out how often your rate adjusts. Some loans adjust every month, some every three months, some annually or every three years.
Step2
Check to be certain the new loan is really better than your old loan. Many banks have a very low introductory or incentive rate that lasts only a short amount of time.
Step3
Know what the closing costs will be and factor that into the overall cost of refinancing the loan.
Step4
Limit your choices down to three possible mortgage lenders, and then request a "good faith estimate'' from each one. A good faith estimate is a document which lays out the details of the loan, which will give your a better idea of what the closing cost to be paid refinance the loan.