Refi-Rush! Things You Should Know When Considering Refinance - Page 2
Credit scores and history are equally as important as appraisal value and income. Accessing your free annual credit report may be the best way to monitor reported content. If you borrow less than 35% of the credit limit offered on your credit cards, you will find that your scores will be more agreeable. There is no substitute for consistent, on-time payments; such a record is invaluable. Low credit scores will cost you in all aspects of borrowing. From car loans to credit cards, your score will determine your interest rate and can affect your mortgage rates and viability, as well.
There are lots of aspects of the refinance that may become a challenge. Ensuring that all of the aforementioned elements are within the risk tolerance of bank guidelines, you will find that the refinance process will go much smoother. On average, refinance customers are saving over $125 per month, some saving hundreds of dollars. Although market conditions are down, you might consider renting your current residence and moving on to buy a new property. Consult your CPA and your trusted mortgage broker to determine how rental income is calculated and whether or not a new home purchase is the right move. If you have an FHA loan on your home now, there may be a way to refinance without needing an appraisal at all. With so many variables, it is always helpful to ask your mortgage professional. Don’t delay too long - this once-in-a-lifetime opportunity to borrow cheap money won’t last forever!