With current interest rates at a record low, borrowers are debating whether or not it is wise to refinance their home loan. Place yourself in the shoes of a borrower. Typically, if your home loan carries a higher interest rate, you have good credit, and are rarely tardy in paying your bills, refinancing might be an appealing option. As always, however, you must do your homework and research all available options in order to make the correct decision according to your needs.

If you have a second mortgage out on your home, refinancing may not be the best course of action, because there is a good chance you will ultimately be paying more than you would have under the initial home loan. In general, lenders view homes with second mortgages in a rather unfavorable manner.

When applying for home refinance, a low debt-to-income ratio is very important, but not exclusive. A borrower can still find means of gaining a lender