Want to lower your payments? Countrywide Home Loans, a division of Countrywide Bank, FSB, may be able to help. If you think that you may qualify for a lower rate on your mortgage, consider refinancing your mortgage to lower your payments. Refinancing may allow you to replace your existing mortgage with a new one -- and that new loan could have lower monthly payments.

You may want to consider a fixed-rate vs. an adjustable rate refinance loan. Fixed-rate mortgages carry a stable interest rate that is usually based on Prime Rate. Prime rate is the Fed-set benchmark lenders usually use to determine what they will charge their borrowers. When you lock in to a fixed-rate mortgage, youll enjoy a predictable monthly payment that will not increase or decrease over the life of the loan.

7 Common Reasons Homeowners Refinance Their Mortgage

1. Lower their monthly payment
2. Lock in a lower interest rate
3. Consolidate debts
4. Get cash
5. Reduce the term of their loan
6. Switch from a variable to a fixed rate loan
7. Switch from one mortgage company to another

Things to Consider before you Refinance to Lower Payments

While many homeowners refinance to lower their monthly payments, some also refinance to get cash, consolidate debt and more. The right loan usually depends on your current situation and your short and long-term goals. Before you refinance your loan, you may want to plan for future needs as well.

5 Tips to Help You Shop for a Refinance Loan

• 1. Have a clear objective for refinancing
  Do you want to:
  • Lower your monthly payment?
  • Change your loan rate or loan type?
  • Consolidate higher-interest debt or get cash?
  Having a clear objective can help when comparing loans.

• 2. Review your whole financial picture, not just the refinance loan
  Look at current and near future financial needs before selecting a loan. You may want to ask yourself:
  • Do I have enough available home equity to pay off other debts and still lower my overall monthly payments?
  • Are there any upcoming home repairs or renovations that I’ll need to finance?
  Tapping your available equity with a refinance loan may be a great way to address these needs.

• 3. Examine your credit report
  • Check your credit report, and that of any co-borrowers, for mistakes and outdated information.
  • Find out your FICO score. Your FICO score is based on your past payment history and credit report. Higher scores usually mean lower interest rates.

• 4. Research your refinance loan options
  • Know what you want before you shop for a loan. It will make comparisons easier and also assist the mortgage professional in getting you the loan you want.

• 5. Comparison Shop
  • Once you know what you want and have a clear picture of your finances, it will make it easier for you to comparison shop for the loan that’s best for you.