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With fixed-mortgage rates hovering near 5 percent, now is a good time to refinance. If you're under water on your mortgage--you owe more than your home is worth--you won't be able to do that. But if you have sufficient equity in your home as well as great credit, you're a prime candidate. Expect to pay for an appraisal and face strict documentation requirements.
In this chaotic housing market, it pays to shop around for a lender. Jack Guttentag, a professor of finance emeritus at the Wharton School who runs a Web site on home mortgages, says there can be a 1 percentage point difference in rates from the highest-priced lender to the lowest-priced and 0.25 ...