One of the nastiest surprises for many homeowners is the mortgage refinance process. Many of them think of a mortgage refinance as something similar to getting a lower rate on your credit card. You just call up and if you have a good track record, the lender will lower your mortgage interest rate.

If only.

In fact, a mortgage refinance is getting a whole other loan. It isn’t anything like your credit card. Rob Blake at Mortgage Insider explains:

When you refinance, you go through the whole qualifying process again. The same comprehensive “financial colonic” you went through when you bought the house…Every criteria used to approve you when you bought will be used to approve you when you refinance.

We are talking about a new home mortgage loan here. So keep that in mind as you consider a mortgage refinance.