Though the Congress was blamed for doing too much in the name of to bail out for the banking industry, help has, by that route, come around to homeowners and mortgage holders - with thirty-year fixed rate mortgages reaching a record low, and creating a sudden boom in refinancing nationwide!

The average rate having dropped near 5 percent, those homeowners who have good credit and those whose homes that have not depreciated too much in value, can take advantage of the willingness of the banks to refinance their mortgages. Since refinancing involves closing costs, even a 2 percent lower rate is worth it!

For those who wish to make the best of the refinancing opportunity, a registered mortgage adviser and senior mortgage planner with Millennium Home Mortgage LLC in Parsippany, Dave Muti, gives simple yet practical advice - that of being honest about their credit, their income, and their debt.

Moreover, even as new low rates are bringing in more customers, refinancing involves filling up a lot of paperwork as banks conduct complete background checks about the credit history, income or job status of a borrower. The current scenario is no longer a 'no-document' mortgage situation.

For homeowners in whose case refinancing may not be possible because their home has lost value Leslie Beck - a certified financial planner in Maplewood and member of The Financial Planning Association of New Jersey - suggests that they explore the possibility of their existing mortgage lenders restructuring the mortgage by lengthening the terms to 30 or 40 year repayments.