If you’re thinking about mortgage refinancing and are concerned that your credit score isn’t up to snuff there are steps you can take to improve it before applying. The refinance rates you get depend on your credit score so you might find your mortgage quotes are higher than what lenders are advertising if your financial ducks aren’t in order. Here’s an article on HSH.com with 5 tips for boosting your FICO score before applying for any mortgage loan:
You’ll be offered better mortgage rates with a higher credit score, says Gumbinger, and that translates into savings. Get offered a 6 percent rate instead of 5 percent on a $200,000, 30-year mortgage, and you’ll wind up paying about $125 more each month. Here’s what you can do to raise your credit scores…
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Getting the most bang for your buck when it comes to raising your credit score is paying down the balances on your credit cards. Maxing out your credit cards has a significant negative impact on your credit score so whatever you can do to pay those balances down could raise your scores significantly.
Remember to check your credit reports for errors and dispute anything you find before applying for a new home loan. Also, avoid opening new accounts for at least 90 days before you’re thinking about a mortgage refi. You can learn more about getting the best refinance rates for your next mortgage loan 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.
