Given how quickly interest rates can rise, many families make the mistake of borrowing more money than they need at a certain time. In order to help you avoid this problem, here are some family refinancing tips that you should consider if you’re planning on taking out a new mortgage soon:

1) ONLY BORROW WHAT YOU NEED

When getting a new mortgage loan, many people take out more money than they actually end up needing for the first few months or the first year. While this might give them more flexibility and freedom with their spending, they’ll be paying interest on additional money they don’t use. If possible, only borrow as much as your budget requires so that you can keep your monthly payments down and save yourself some interest.

2) COMPARE MORTGAGE RATES BEFORE YOU TAKE OUT A NEW LOAN

It’s very important that you don’t just go with the first bank or broker that offers to refinance your current mortgage. If you want to get the lowest possible interest rates, then it makes sense to compare several different options before making any decision. Don’t worry too much about finding someone reputable because all of this information is available online. Just look up reviews on the company and/or check their website for more info on why they might be offering competitive rates while others are not.

3) CONSIDER EXTENDING YOUR TERM LENGTH IF NECESSARY

Another thing you should consider is whether or not it makes sense for you to extend the length of your new loan in order to bring down your monthly payments. If you’re currently paying around $2,000 per month for a 30-year mortgage and can reduce it to $1,500 by extending the term length to 35 years, make sure that it’s actually worth it. Ask yourself whether or not you need all of that flexibility or if there are other ways for you to save money without lengthening the term length.

4) MAKE SURE YOUR CREDIT REPORT IS ACCURATE

One of people’s biggest mistakes when getting a new loan is applying for one based on an inaccurate credit report. Suppose your excellent credit score is being misreported as poor because of identity theft or some other error. In that case, this could significantly increase the interest rate that banks offer you even if you have a top-notch credit score.

5) DON’T AUTOMATICALLY SIGN UP FOR AUTOMATIC WITHDRAWALS

There’s nothing wrong with choosing to make monthly payments automatically, but be aware that you might end up paying more than the actual interest if your bank makes a mistake when calculating your monthly payments. If possible, try to choose an option that allows you to take control of the situation and fix any errors if they arise. You can also ask your bank what their policy is on rectifying mistakes made when calculating interest so you know whether or not it’s worthwhile to set up automatic withdrawal in the first place.