WAYS TO GET THE LOWEST MORTGAGE REFINANCE RATES
This is one of the articles you need to pay attention to while reading because it explains one of the problems that we tend to face when looking to get mortgage refinance. At the end of this article, you will understand things that will help you get the lowest mortgage refinance rate. There are certain […]
This is one of the articles you need to pay attention to while reading because it explains one of the problems that we tend to face when looking to get mortgage refinance.
At the end of this article, you will understand things that will help you get the lowest mortgage refinance rate.
There are certain things you can do to get the lowest and best mortgage refinances rates. Shockingly, there are little things you can do to attract these rates.
MAKE SURE YOUR CREDIT CARD BALANCE STAYS BELOW 25%
Make sure your credit card balance stays below 25% of your available credit. Another thing to do is asking your credit card provider to increase your available credit. The reason for keeping your credit card balance below 25% is to help lower your credit utilization ratio and this will ultimately earn you a better/lower interest rate.
WATCH OUT FOR NO COST LOANS
There is nothing like no cost loans. Every loan comes at a cost, they make it look like it’s free but the truth is, it’s not. All lenders will charge a fee, it could be paying them upfront or it is rolled into the loan balance or sometimes built into the loan’s interest rate.
Paying the closing cost out of your pocket will definitely lower your interest rate.
USE CUSTOMER CREDIT
It’s cool to always pay off your debt, it gives you that liberating feeling, but on the flip side, it is normal and good if you continue making small purchases off your credit cards frequently. Continue doing this even after paying off your balance at the end of each month. It’s just one of those ways to show that you can manage debt properly. This skill can help improve your credit score.
INCREASE YOUR CREDIT SCORE
This can never be stressed enough but you need to increase your credit score, this is because most lenders requires a certain credit score to be able to work with you, a credit score of about 620 and above puts you in the best tier to get a conventional loan program though you will still have to pay a higher mortgage rate for conventional loans.
That is why scoring 740 and above will reduce the mortgage rate you pay. That is why you need to always endeavor to get a high credit score.
TRY TO LOWER YOUR DEBT
If you want to reduce your DTI (Debt-to-Income-ratio) payyour bills on time and make sure you pay down your credit card balance, doing this will surely qualify you for getting a low-interest rate.
Another thing you should do is make sure your DTI stays below 36%, the lower the better.
DON’T CASH OUT YET
You will be tempted to cash out now, but resist that temptation; a cash-out refinance will raise your interest rate.
LOCK IN FOR THE BEST REFINANCE RATE
Everybody thinks they know when and how mortgage rates behave in the very short term, well, that’s because of policy announcements, economic news or even the government’s report.
A mortgage rate lock prevents any rising rates from affecting your own mortgage while the loan is still been processed.
HOW LONG ARE YOU PLANNING ON A STAYING IN YOUR HOME?
Do you know how long you will be staying in your home? This is one question you need to analyze properly.
Knowing when you will be selling your house is key to choosing the right rate for you. If you will be staying in the house for a little period of time, going for an ARM that comes with an introductory rate would be your best bet.
HOW DO YOU WANT TO PAY FOR YOUR REFINANCE?
You really need to decide how you plan on financing your refinance. How do you want to pay for your refinance?
Both closing cost and lender fees can be paid at closing or wrapped into your loan balance.
If you follow the tips explained in the article, there is every assurance that you get the lowest mortgage refinance rate