The predictable answer is – refinance when interest rates are low. The reality is, no one knows when interest rates will rise or fall, or how high or low they will go.

The best time to refinance is after you have done your research, considered your options carefully, and gathered all the paperwork you’ll need.

Here are some important factors to consider:

Have you done your research?

Don’t get caught up in the hype that sees many people flock to their bank demanding refinancing although they know very little about it. Educate yourself so that when the time comes you feel comfortable with your decision, whatever it turns out to be.

Start by requesting a copy of your credit report so you know how lenders are likely to react to your application. Next, start researching interest rates, terms and refinancing charges. Don’t apply for anything just yet – just do the research.

Learn more about terms you may not understand. If you don’t know what it means to pay points or “buy down” an interest rate it is time to find out.

Consider the pros and cons of a fixed rate loan, an adjustable rate loan or a hybrid loan that remains fixed for three to seven years before becoming adjustable. Consider the loan term that would suit you best – whether 15-, 20-, 25- or 30-years.

This section is sponsored by : We get you approved quickly Interest rates are at historical LOWS. With our easy, hassle- free application, we'll quickly match you with a top lender in your area based on your needs. Quick-Mortgage-Loans.com

Get your paperwork ready

Don’t get caught up – or left behind – in a stampede of homeowners trying to refinance before rates go up. Instead, prepare your paperwork so you are ready to proceed when the time comes. Gather, and make photocopies of, everything a loans officer or mortgage broker will ask to see including:

• Your mortgage statement

• Bank and brokerage statements for the last month

• Tax returns for the last year (the last two years if you are self employed or have been at a job for less than two years)

• Pay stubs for the last several months

• Your most recent W-2 forms

• Statements for any home equity loan or lines of credit

• Your homeowner’s insurance statement

• Statements for your 401(k) and/or other retirement accounts

If you decide to refinance, and have completed the above tasks – you will be able to move quickly. Fill in an application online and drop off your photocopied documentation in person (where applicable) the same day. Although the entire process can take two to four weeks, you want your application to be at the top of the pile.