In todays mortgage market there are more options when refinancing than ever. If you are considering refinancing to lower your mortgage payment or your interest rate there are loans for any financial situation. Here are tips to help you get started refinancing your mortgage.

The Federal Reserve has been consistently raising interest rates for the last two years. If you have an Adjustable Rate Mortgage (ARM) and are concerned with what the Fed is doing to your monthly payment amount, consider refinancing to a fixed rate mortgage. A fixed rate mortgage will help your financial peace of mind; choosing a fixed rate mortgage allows you plan your budget around the monthly mortgage payment.

If you are in need of a lower monthly payment consider extending the term length of your mortgage. There are now 40 and 50 year mortgage options that will allow you to significantly lower your monthly payment amount. The downside of these mortgages is you will pay significantly more in finance charges over the life of the mortgage. Mortgages with long term lengths also come with higher interest rates due to increased risk for the lender.

If you only plan on staying in your home for a short while, taking out a 30 year fixed rate mortgage does not make good financial sense. You can save money by choosing an Adjustable Rate Mortgage with a low introductory offer and refinancing or selling your home when the introductory period expires. Just make sure the Adjustable Rate Mortgage you choose does not include a prepayment penalty; if you have to pay this penalty you may lose any savings you had by choosing this loan.

To learn more about your mortgage refinancing options, including common refinancing mistakes to avoid, register for our free mortgage guidebook: Five Things You Need to Know Before Refinancing Your Mortgage.