Generally speaking, refinancing can be easier than buying a brand new home, especially for first time home buyers. However, some people may find that refinancing is difficult in itself. If you are refinancing your mortgage, you may find yourself road-blocked with some obstacles in your way.

With mortgage rates at all-time lows right now, refinancing your home can be a great way to save a lot of money. But the possible obstacles do make it hard to see the light at the end of the tunnel. Here are some common refinancing obstacles and how to deal with them:

You’ve refinanced within the past six months to a year. You might not be qualified to refinance again so soon. Or it may hurt your chances of getting a refinance loan. Recent refinancing can create a challenge for those who are hoping to get a lower mortgage rate. You can discuss your situation with your lender, and they may be able to fund a new loan depending on your situation.

The value of your home is low. Many homeowners may find that they owe more than the appraised value of their home, or they little equity. This can make refinancing difficult; in fact, it’s one of the hardest obstacles to overcome. Reevaluate the value of your home if you think it’s incorrect. If you have equity, you might be able to split the mortgage into a first mortgage and a second equity loan or line of credit. The second loan will have a higher interest rate, but the balance on the second loan will be much smaller than the first, and you may be able to pay it off early. There are loan refinancing programs for people who owe more than the value of their home.

Your credit score is low. If you don’t know your credit score, you can easily get a free one. If your score is below 720, you can improve it but you must act quickly. While your score doesn’t have to be 720 or above in order to refinance, you need it in order to get the best rates.

You can’t afford the fees. It costs money to refinance, and the cost varies by state and mortgage company. Understanding the fees is important, as you need to figure out how long it will take to recoup the fees in payments with lower interest rates. Some fees are negotiable, and others are not. Closing costs usually run about 2.5-5% of the mortgage, so even with reduced monthly payments from lower interest rates, it may take you a little while to break even on your refinancing. Depending on how much interest you’ll be saving, it typically takes between two and three years to recoup your money. There are ways to keep these costs fairly low, but you must do your homework to save any money.

If you’re afraid to refinance because of any of these obstacles, remember that most of them can be overcome. All you have to do is take the initiative to refinance to reap the benefits in the long run. Find out now from Home Loan Advisor for free if you qualify for a home loan!