Best Refinance Mortgage Rates – Ways to Qualify for a Low Refi Rate

  • Obtaining a low rate is a top concern for many homeowners who choose to
    refinance their existing mortgage. Those who are unable to qualify for
    a low refinance rate may choose to delay refinancing. Because the refi
    process creates a new loan, homeowners must have money to cover closing
    costs and other fees. If you are unable to obtain a low rate,
    refinancing may not be the best option.

    There are various ways for homeowners to improve their chances of
    qualifying for a low rate refi. If you have a good credit rating, many
    lenders will be glad to offer you prime rates. Most mortgage professionals
    propose refinancing when mortgage rates are two points lower than your
    present rate. In this situation, you will notice a decrease in your
    monthly mortgage payment.

    Homeowners with a bad credit rating should carefully weigh the
    advantages and disadvantages of refinancing. In some cases, obtaining a lower
    mortgage payment, or getting cash at closing, may help improve your
    current credit status. The lump sum of money you acquire at closing may be
    used to consolidate debts, payoff bills, etc.

    Boost Your Credit Score for a Low Refi Rate

    Individuals with the highest credit scores will qualify for the best
    loan rates. Thus, a good tactic for obtaining a low rate refi is to
    increase or improve your credit rating. Many factors contribute to your
    credit rating. Late payments, missed payments, judgments, and high debt to
    income ratio are damaging to your credit score. For this matter,
    lenders will not offer you a super low rate on a refi mortgage with a bad
    credit history

    The best way to improve your credit is to reduce your outstanding
    balances, pay debts promptly, and avoid skipped payments. Improving your
    credit will take time. However, after several months of making regular
    payments, your score will begin to improve.

    Compare Different Refi Loan Packages

    Comparing and contrasting different different lenders is an effective way
    to finding the best refinance loan package. When choosing a lender, you
    should contact mortgage companies, banks, credit unions, etc. Do not
    accept the first offer you receive. Instead, request quotes from several
    financial institutions. If possible, obtain your loan through a
    mortgage broker. This will save you time and money. A mortgage broker will
    Submit your information to various lenders for review.

    Source by Carrie Reeder

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