Are you considering refinancing your mortgage? If the answer to this question is yes, then here is a tip for you that can save you some grief later on.

It is not generally well known, but some home loans have a prepayment penalty clause as part of the loan conditions. It works like this. If you pay off the mortgage early, say as part of a refinancing plan, then you must pay a penalty fee as part of the payoff. A prepayment penalty can cost you money if you plan to refinance the loan to obtain a better interest rate.

Before signing up for a refinancing mortgage, make sure the new loan doesn't have a prepayment penalty. In some states prepayment penalties are illegal. You can and should shop around to find a loan package that doesn't contain a prepayment penalty.

If you have decided to refinance your mortgage, remember to compare different web sites to find the best terms and conditions for you. And don't forget to shop locally. Your home town bank may have better rates than you can find on the Internet.