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To keep your finances protected, it's a good idea to review your credit report regularly. It's also important to have your credit monitored by a reputable company, preferably one that alerts you when credit inquiries are made or if new accounts have been opened in your name. This could be crucial to discovering whether someone is using your identity, and can help you stop them before the problem gets out of hand.

THE IDENTITY THEFT EFFECT ON YOUR LOANS
Although lenders assess a variety of factors when reviewing a loan application, your credit is typically among the top considerations. Bad credit may not disqualify you from securing a loan, but it may decrease your options. It can also increase your interest rates, which could end up costing you thousands of extra dollars in the long run. With criminals finding new ways to steal personal information, keeping an eye on your credit activity remains crucial to protecting your home and finances. So now that you know how to help protect your finances from others, how can you protect your home and finances from yourself?

START BY CHOOSING WISELY
When refinancing or requesting a mortgage, you want to be certain of two things:

1) You choose the right lender
2) You choose the best mortgage for your finances

Below are a few tips and techniques you can use when applying for a loan.

• Your Down Payment. Keep in mind that a lower down payment might sound good now, but can add up to much higher interest payments, increased insurance costs and more. Figure out the numbers before making your down payment decision.

• Discount Points. This is the amount paid to the lender at closing. Each point is one percent of the total loan amount and will decrease your interest rate based on the number of points you pay. Do your numbers and see if paying more points to lower monthly payments will pay off in the end.

• Rate Term. Once again, when selecting a rate term, it's important to think about both the present and the future. Can you afford a higher monthly payment and pay off your mortgage sooner? Or will you be able to live a more comfortable life with a lower monthly payment but pay more in interest?

• Rate Type — Fixed or Adjustable. If you're planning to keep your mortgage for a long time and rates are low, a fixed mortgage might be best. If you're planning to sell your home (or refinance your mortgage) before the rate adjustments of an adjustable rate mortgage (ARM) begin (or if rates are considerably high and likely to drop in the near future) you might want to consider an ARM.

YOUR LOAN COMPANY — CONTINUE TO CHOOSE WISELY
There are other factors to choosing the right loan program (closing costs, locking your rate, pre-approval, private mortgage insurance, etc.). A good lender will explain all of this to you. Which leads us to the second part of protecting your finances: choose a lender who takes their time explaining all risks and rewards, answers your questions and recommends programs based on current, future and potential circumstances.

When you make the decision about which program and lender to use, make sure you've done the numbers more than once - it's one of the best ways to help protect your home and your finances for a long time to come.

5 Reasons To Refinance:

1. Spend Less Each Month — These days, life seems to come down to monthly payments. If you are struggling to meet your mortgage payments, you may need to consider refinancing. If you can get a lower interest rate than what you currently have, you may be able to save substantially on your monthly payment.

2. Refinancing Your High Interest Mortgage — If you have owned your home for a while, there are a lot of options available that can help you save more money. For instance, a simple refinance at a lower interest rate could save you money each month.

3. Refinancing Home Mortgages to Extend Your Term — If interest rates are lower than they were when you bought your home, you can refinance by taking out another 30-year fixed mortgage. You are now borrowing less than when you first bought your home at a lower interest rate and spread out over more time. Your monthly payment is likely to drop considerably.

4. Moving From an Adjustable Rate Mortgage to a Conventional Fixed Mortgage — Some loan types that worked well for you at first may not be the best option when interest rates start to climb. Adjustable rate mortgages or interest-only loans can be a good way to start out with a lower monthly payment, but the monthly payments can balloon once the initial fixed term ends. Also, interest-only loans will not help you build equity in your home.

5. Eliminating Other Debt — If you have significant credit card debt at high interest rates, it may make sense to refinance in order to pay off that debt. The interest on your mortgage may be lower than nearly every credit card. Plus, you can benefit from the tax incentives that mortgage payments bring.