There are a number of common mistakes that result in paying higher mortgage refinance rates or even having your refinancing application declined. These mistakes include everything from overestimating your income to skipping a payment. Here’s an article by Gina Pogol on HSH.com with 5 dumb mortgage refinancing mistakes you’ll want to avoid on your next home loan:
When refinancing a mortgage, smart people can do stupid things. But smart people can also get informed and avoid costly errors. Here are five stupid refinance mistakes and the smart ways to avoid them.
The most important suggestion I can offer before your mortgage refinance is to carefully review your credit reports for errors and pay down the balances on your credit cards. The mortgage refinance rates you’ll get for your next home loan are closely tied to your credit score and maxing out your credit cards has a huge impact on your score.
Another common mortgage refinance mistake is focusing on getting the best refinance rates at the expense of fees and points. The more you pay closing on your new home loan the longer it’s going to take to break even on fees and benefit from a lower mortgage rate.
You can learn more about getting today’s lowest refinance rates without paying unnecessary fees by checking out my free Underground Mortgage Videos.