In this guide-

+ Background on mortgage refinancing
+ Features to look for in mortgage refinancing services
+ How to find the best mortgage refinancing program for you

This short guide was created to help you understand the basics of mortgage refinancing and to help you choose the right mortgage refinancing program for you. We do not offer any mortgage refinancing services ourselves, so you can be assured that all of the information in this guide is independent and unbiased.

Background on mortgage refinancing
Most mortgage refinancing loans fall under one of two major categories of loans- fixed rate and adjustable rate. Fixed loans are paid back over a certain term (10, 15, 20, and 30 years being the most common terms) and have the same interest rate over the life of the loan. Adjustable rate loans usually have the same term options as fixed loans, but the interest rate varies over the life of the loan. The specific terms of your mortgage refinancing loan, meaning how much you can borrow, the down payment required, what the interest rate is, and the term of the loan will be based primarily on your credit score, debt-to-income ratio, and loan-to-value ratio.

Your credit score, also known as your FICO score, is the main factor in determining the terms of your mortgage refinancing loan, and is calculated using both your credit history and debt-to-income ratio. Your credit history is determined by a combination of number of credit obligations, past payment performance, credit utilization, total available credit, length of credit history and inquiries. Although your credit score remains the same regardless of which lender you choose, some lenders will have different programs based on your particular credit score.

Your debt-to-income ratio will also determine to a large degree the amount that you will be able to borrow on your mortgage refinancing loan. Your debt-to-income ratio is expressed in a percentage as the amount of debt compared to your gross (before taxes) monthly income. There are two different debt-to-income ratios that are commonly used- one that includes just your housing debt and one that includes your housing debt plus all other forms of debt (credit cards, etc.). Although your debt-to-income ration remains the same regardless of which lender you choose, some lenders will have different programs based on your particular ratio (plus self-employment, etc.)

Your loan-to-value ratio (LTV) is expressed in a percentage as the amount of the loan that will be borrowed in relation to the value of the property that is being used as collateral for the mortgage refinancing loan. Traditional mortgage refinancing was done