Our story was similar to many others that I've encountered. We originally got a variable rate mortgage. It was great for those years when the rates were plummeting. Once the rates started creeping up, I began to look at our options.

Although our bank had been good to us in the past, there were no branches located near our home. We decided to look around for a new bank. We quickly found that just having our property put us in a position of having a problem remortgage. Because there were several acres along with the house, conventional lenders would not even look in our direction. Our current bank was the only choice we had without incurring extreme expenses getting a survey to cut out a small amount of land around the home.

Even staying with the same lender, we ended up having to get an appraisal on our existing property. The bank chose the appraiser, and he brought us to the second snag in out problem remortgage. The amount that he valued our home was actually less that the original appraisal (nearly ten years earlier) had been. If we had been smart (and followed our gut) we would have paid for a second appraisal by the man who did our original. We were assured that things would be alright, so we listened to the experts.

Things weren't alright, and our simple refinance was not only a problem remortgage, it was a disaster. We had counted on cashing out some the equity to add on to our home and with the banks assurance had already started the construction. Now we were looking as barely getting out what we needed to pay off the original mortgage. It was the experts, once again, who suggested we look at an equity line.

Although the equity loan did solve our monetary problems, it caused so many more. Because of all the recent natural disasters in the country that caused flooding damage, it seemed that we were required to carry flood insurance. This meant additional out of pocket expense, additional time waiting on the flood certificate, and additional stress related to the cost of the ongoing construction.

There is so much more to a refinance than just signing new papers. What seems like a simple transaction can quickly become a problem remortgage. The best way to avoid the pot holes is to take your time, know all your options, and think before you jump into any financial obligations that will force your decisions for you.

A little patience can keep your refinance from becoming a problem remortgage.

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