You will not find advice here from a financial expert; far from it! I learned many necessary lessons about refinancing my home the old-fashioned way, courtesy of trial by fire. It is my hope that by sharing what I have learned, I will help you to avoid some of the same pitfalls.

There are countless reasons to consider a re-fi. Your reasons to investigate refinancing will, no doubt, be different than mine. Nonetheless, no matter how valid your reasons are, you can find yourself in trouble if you do not do the legwork before you actually apply for a new loan.

Read everything you can get your hands on that will explain the complicated world of mortgage lending practices, and the endless list of fees and service charges which are part and parcel of refinancing. Learn and understand the terminology thoroughly. Ask question after question of your lender until you get an answer that makes sense to you.

I began to think about refinancing when, because of a period of prolonged unemployment and irresponsible credit card spending, the state of my finances reached crisis mode.

By this time, I had owned my home for 11 years. Over that 11-year period, the value of my property had doubled. It seemed like a no-brainer, I had thousands of dollars of equity in my home and I needed money. Refinancing the first time was the right move.

Trouble began brewing when I went back to the well; not just one more time, or two more times, but three more times. In short, I had begun to see my home as another savings account from which I could withdraw money.

What I did not understand until much later was just how much it was going to cost me each time I made a withdrawal (refinanced). I had not done my homework and I paid the price.

In total, I paid settlement charges of $21,940.00 (which is equal to 52% of the TOTAL money I actually received) - $41,695.00. Yes, I got $41,695.00 and "they" got almost $22K. Ultimately, $63,635.00 was tacked on to my original home loan. I now owe the lender more than my house would fetch on the open market.

More than half of the settlement charges went for mortgage broker fees. In addition there are loan origination fees, settlement fees, title insurance, government recording fees, and on and on. And, my personal favorite, $200 for courier fees! If they had told me I could save $200, I'd have picked up and delivered the paperwork myself.

Before considering refinancing your home, here are a few things I suggest you look

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