How do you get the best home mortgage refinance rate? In the world today, it can be very difficult to get a good interest amount. Follow some simple steps to keep your rates low and youll be saving a ton of money over the course of your loan. It can literally add up to tens of thousands of dollars over time. You will save thousands of dollars over the course of your house loan.
The first step to getting a better mortgage refinance rate is improving your credit score. Yes, this is a more of a long term idea, but inaccuracies in your report can be fixed in short order. Get a copy of your credit report and scan through it for anything you can dispute. This is more common than you think, so it may be worth checking out to see what improvements you can make. It will give you a quick boost, which could really help you lock in a decent interest rate with your mortgage refi loan.
The next way to get a better mortgage refinance rate is increasing your monthly income. Consider the benefit of a second job. This will show a widened gap between your current monthly net pay, and your monthly bills. Banks generally believe that all non-mortgage monthly debt should not exceed 15% of your take home monthly pay. This is pretty common, but it may vary a little bit by lender.
Get more equity in your current home by smart remodeling projects. There are several simple things you can do. Paint, power washing, and small remodeling jobs can build your equity. Bank are only willing to finance a certain percentage of your home value, the closer you are to the top of that cap, the higher the rate may be. (often called loan to value ratio) This can really help you save a lot of money over the course of the mortgage refinance and will help keep the interest rates nice and low. Before you jump into any remodeling projects, you want to determine exactly how much you will have to spend, and then compare it to the equity increase you can expect. This makes good financial sense for homeowners.
Lower the principal amount of your mortgage refinance loan. Including extra money for miscellaneous repairs pushes you closer to the maximum loan to value ratio. A slightly smaller loan may save you thousands in interest. In addition, it will also greatly improve your odds of getting approved for the loan from any bank or lender, even online banks for house loans.
Shop around! Check out lender rates, both local and online. Online mortgage lenders often have better rates. Do your homework on any potential lender. You really need to use good judgment and common sense more than anything else. If you do, youll be able to land the very best mortgage refinance rates.
Decrease your total debt to decrease your interest rate. You can negotiate a credit card debt reduction to make a quick dent, or pay off any other loans you may have out. This is how to get the best home mortgage refinance rates.