Did you know that raising your credit score by as little as 40 points could get you a better refinance rate on your next home loan? Just because mortgage refinance rates are hovering near historical lows doesn’t mean you’re going to qualify for today’s best refinance rates. When it comes to the interest rate you’ll get on your mortgage refinance it’s a sliding scale depending on your credit score. Here’s an article from Fox News with seven tips for improving your credit score before refinancing your home mortgage loan.
If you want to save big money on a big loan, do your homework, say the experts. Raising your credit score by as little as 40 points could qualify you for a lower interest on a home mortgage or an auto, student or personal loan. Think of it this way–if you take out a $50,000 loan for 15 years with a 7 percent interest rate you will pay nearly $5,000 more in interest than if you borrow the same amount at 6 percent.
Once you’ve decided to go forward refinancing your home mortgage there’s more to getting a good deal than qualifying for a low-interest rate. In fact, the main factor determining how good of a deal you’re getting is the fees you’re paying for loan origination and closing. These fees determine just how good of a deal you’re getting on your mortgage refi because you’ll have to recoup these out-of-pocket expenses before gaining any benefit from your lower payment amount.
The more you pay closing on your new home loan the longer it’s going to take you to break even and the less mileage you’re getting for your efforts. Your can learn more about paying less mortgage refinancing while avoiding unnecessary fees and markup by checking out my free Underground Mortgage Videos.
My name is Rob Regehr and I’m a personal finance writer with a chip on my shoulder for banks and brokers that take advantage of my friends and neighbors.
