Thanks to The Digerati Life for this post. If you're considering refinancing, you'll find this information helpful:

Many homeowners who are struggling to keep up with their monthly mortgage payments think of refinancing when interest rates go down. When you question some lenders about refinancing options, you can expect to start receiving e-mails and telephone calls almost everyday.

There are a number of reasons why people resort to refinancing and one of them is to make the most out of reduced interest rates. The borrowers have the opportunity to reduce their monthly mortgage payments if the interest rates go down. If they want to reduce the refinance loan term, they might have to pay higher monthly payments, but they can still save on interest costs. By shortening the loan term, they can pay it off faster.

Before you refinance, you'll need to observe interest rate fluctuations. As rates go down, so do a slew of other rates, such as savings account rates and credit card interest rates. This is actually a good thing for the housing loan market, but you'll need to keep an eye on a moving target. Of course, the goal here is to try to lock in the lowest rate that you come across. You can do this more than a month ahead of closing, which is basically the final step when you refinance. If you’re not able to do so, you can lock in a rate even five days prior to closing.

Like getting your first mortgage, you’d have to apply for a "new loan" to refinance your existing mortgage. If you remain with the same lender, you might save some money and time since there are reduced formalities. Realizing the extent of competition out there, it’s beneficial for your lender to provide you a good offer. Nevertheless, there are a lot of lenders who are eager for your business and you can shop around, not only for reasonable rates, but also to save money on fees. The procedure which involves closing with one lender and starting with another lender, usually generates a range of fees that can frequently accumulate, so get a list of all probable fees. Request a quote that incorporates the correct fees.

If you’re thinking about living in your home for quite a number of years, then it’s better to make the most of low interest rates. Just like when you took out your original loan, you can also buy points that are a type of prepaid interest. If you have additional cash on hand, this might be helpful. Every point is 1% off the overall loan amount. By paying points, you can reduce your interest rates.

You can also go for a cash-out refinancing where you can refinance with an amount that is higher than what is outstanding on your current mortgage; the difference between your new loan and your old loan is the amount of cash you get to keep. This is basically a technique that will allow you to obtain some money as a tax-free loan on the difference between the present home value and its value from the original mortgage. For instance, if your mortgage balance is $100,000 and your current property value is $300,000, you can refinance for $175,000 and keep $75,000 as tax-free money minus the fees and transaction costs. As per Freddie Mac, one of the leading secondary mortgage market players of the country, almost 60% of borrowers who refinance do this for the aim of cashing out.

The Digerati Life is a personal finance site that offers tips and resources on credit card and debt management. Check out the site’s review of best balance transfer credit cards and 0% APR credit cards.

Now that debt settlement is becoming a more popular option for getting out of debt, so are the scammers. And since most people don't really understand how debt settlement works, getting scammed is a lot easier.

DON'T just sign up with the first company you see on TV without doing your homework!

And don't let yourself get ripped off if you decide to use someone to settle your credit card bills. Think of it as you "hiring" them to perform a service for you. And when you hire someone, you're careful, aren't you? Well, if not, you should be.

Most of the debt settlement horror stories occur because people have no idea what they are getting into. Shame on them!

Know what you are getting into. Learn how debt settlement works. And look for these top 5 warning signs that you should avoid a debt settlement company:

1. Sounds too good to be true - yes debt settlement works. But it takes time. And different creditors look at settlement differently. So if any company promises results that sound too good to be true, watch out!
2. Vague answers your questions - like the old TV commercial, an educated consumer is the best customer. If the settlement company simply want to sign you up and won't answer your questions clearly, then move on to the next one.
3. Want you to send money before you sign (or read) paperwork - you MUST read AND sign paperwork before sending any money. This is your contract. If something goes wrong, and you don't have any paperwork, you're in trouble.
4. Too many BBB complaints - OK, the Better Business Bureau doesn't like the business of debt settlement, and some companies get D or F grades simply because they are in the industry, even with just a few complaints. But if the company starts getting up to 10, 20, 50 compaints, it's a good idea to turn and run.
5. No screening process to see if you are actually a good candidate - no, not everyone can benefit from settling credit card debts. If you are close to bankruptcy, if you have the means to pay on time, if you don't have enough cash to make the settlement payments, then you may need to seek legal advice instead!

If you come across any of these warning signs, STOP!

And look for another company to settle your debts. There are lots of good ones out there. Here are our reviews of the top debt settlement companies we've found (and yes, we get credit for referring you).

If you find out that credit card debt settlement is NOT right for you, here are some other ways to get the debt help you need.