If you are a homeowner looking to refinance your mortgage there are steps you can take to qualify for a better interest rate. Here are tips to help you improve the interest rate you qualify for when refinancing your mortgage.
Your Credit is Key
The higher your credit score is the better your new interest rate will be. If your credit score isn’t where it should be you can improve your score by paying down the balances on your credit cards and making sure all of your payments are made on time. You should take the time to review your credit records for errors. These credit records are maintained by three agencies and mistakes are common. The three credit agencies are Equifax, Trans Union, and Experian. You can get a free copy of each credit report once per year online.
If your credit is poor, no amount of polishing will help in the short-term. You may still be able to refinance your mortgage; however, you can expect to pay a premium to the lender for doing so. You can use a bad credit lender to rebuild your credit and refinance again once your credit has improved.
Start Saving Money
When you pay down the balances on your credit cards and start saving money you reduce the amount of risk you pose for lending. The mortgage lender may require you to pay points to qualify for the new mortgage. A “point” is one percent of the loan amount paid upfront as pre-paid interest. Paying points does not lower your principal balance; however, you pay this fee in exchange for qualifying or receiving a lower interest rate. To learn more about refinancing your mortgage, including how to shop for the best mortgage lender while avoiding common homeowner mistakes, register for a free mortgage guidebook using the links below.
To get your free mortgage guidebook visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.
Claim your free guidebook today at: http://www.refiadvisor.com
no doc refinancing
Article Source: http://EzineArticles.com/?expert=Louie_Latour
