Home Mortgage Refinance Loan: Your FICO Score & Mortgage Refinancing

Your FICO Credit score is used by mortgageraise your FICO score before applying for a home
companies to determine how much of a risk you aremortgage refinance loan.
for a home mortgage refinance loan. The lower yourHow to Improve Your FICO Score before Mortgage
score, the more you will pay when mortgageRefinancing
refinancing. There are ways to improve your creditImproving your credit score takes time, there is no
before applying and save money on your homequick fix; however, there are steps you can take to
mortgage refinance loan. Here are tips to help youraise your score. First, make sure you are paying all of
polish your FICO score and qualify for a betteryour bills on time as 35% of your FICO score is based
mortgage refinancing interest rate.on your payment history. Fair Isaac also bases 30% of
FICO stands for "Fair Isaac Corporation," named foryour FICO score on the amount of your debts and
the company that calculates your score. Fair Isaacyour available credit limit. The remaining factors include
evaluates the contents of your credit reports and15% based on the length of your credit history, 10% on
assigns a numerical value to your credit worthiness.the amount of recent inquires, and 10% on the type of
Because there are three companies that maintaincredit accounts you use.
records, you will have three FICO scores, one for eachThe items you can control prior to mortgage
credit agency. Before you consider mortgagerefinancing include paying your bills on time, maintaining
refinancing it is important to request credit reports fromlow balances on your credit cards, and paying off
each credit reporting agency and carefully review yournegative information found in your credit reports. The
records for errors.more time you have to devote to improving your credit
Any adverse information found in your credit reportsscore, the more you can boost your FICO Score. If
will damage your FICO scores. Other factors thatyou are a homeowner with poor credit you want to
affect your FICO score include the length of time youdevote at least six months to improving your FICO
have been using credit, the amount of available creditscore before applying for a home mortgage refinance
vs. your debts, negative credit information in your file,loan. You can learn more about your credit and how it
collections, any write-offs or bad debt. If you findaffects mortgage refinancing by registering for a free
mistakes in your credit history it is important to disputemortgage tutorial.
the error and allow enough time for the correction to