If you’re wanting to take advantage of today’s best mortgage refinance rates but are frustrated to find the interest rates you’re being quoted are higher than what lenders are advertising, the culprit might be your FICO credit score. There are steps you can take to make sure your credit report isn’t holding you back from today’s low mortgage refinance rates. Here’s an article on MortgageLoan.com explaining how your FICO score affects refinance rates and what you can do about it:
Everyone knows that your credit score affects your ability to get a mortgage. What’s less well-known is just how it affects the interest rate you’ll pay. The general rule of thumb has traditionally been that you need a FICO credit score of 720 to obtain the best mortgage rates. Unfortunately, that’s no longer true. These days, most lenders will demand a score of 740 or even 760 before a borrower can qualify for their best mortgage rates.
The first thing you should do before shopping for mortgage refinance rates is check your credit reports for mistakes. You don’t have to pay credit reports; congress passed a law several years ago requiring the credit bureaus to give you a free copy once per year and you can get yours at annualcreditreport.com.
There are other steps you can take to make sure your FICO score is as close to 720 (or higher) as possible. First, avoid opening new credit accounts prior to mortgage refinancing. You can learn more about getting today’s lowest refinance rates without paying junk fees or markup by checking out my free Underground Mortgage Videos.