If you decide to refinance your home, then you may enjoy certain benefits including a lower interest rate and reduced monthly payment. Refinancing can also give you some cash to invest or spend. You may want to finance to adjust the length of the loan or change the type of mortgage. At your old age, you cannot afford to lose your home. Making a decision to refinance may involve a lot of thinking. To make sure refinancing is right for you, you may want to look at some things.

• Eligibility

Lenders will look at your financial condition, debt-to-income ratio, and credit history as well as loan-to-value ratio. The current value of the property, income, assets and loan size are other elements that lenders can consider to determine your eligibility. Also look at your credit score. Lenders may base your eligibility on the score as well.

• Know the type of loan you want

All the information you have about the loan you want can help you find the loan with the best possible rate. Seniors can disclose their details to their loan officers to help in determining the best loan that suits their requirements.

• Shop for a new loan

When shopping for a new loan, you can find the best financial deal. You should have all the necessary information you need to shop, compare and negotiate for a new loan that can save you money. The internet and newspapers are some shopping resources.

• Be careful with advertisements

Some advertisements may offer low rates to lure you. The advertised rates may not be as reliable as you want them to be. The advertising materials are designed to make the product as attractive as possible.

• Do not go for lenders who solicit customers

Lenders who entice you to refinance your mortgage may rush you into making a hurried decision. When you are ready to refinance, you should make a decision when you have scrutinized all the lenders.

• Be wary of rates and teasers

Lower rates and teasers such as loan adjustments can lure you into refinancing. You should consider all the other factors before taking on a new loan to decide if refinancing is wise financially.

• Refrain from extending your loan unnecessarily

At your age, it may not be good to take on a loan that you will pay for long after your retirement. You can choose a loan with a shorter term to eliminate the housing debt as soon as possible and enjoy your retirement in peace.