| Are you looking to refinance? Want to save money | | | | than the due date. Mortgage lenders and banks will |
| every month? Interest rates are probably lower than | | | | see that when it comes to your home, you are perfect |
| when you bought your home, but do you qualify for | | | | on payments, and are much less of a risk. This can |
| them? Here are 4 things which have the biggest | | | | help you get the approval you need, for mortgage |
| impact on the mortgage rate you receive: | | | | refinancing at good interest rates, even with less than |
| -Your Credit Rating | | | | desirable credit. |
| Your personal credit score play a huge role in | | | | -The Amount Due on your Current Mortgage |
| determining your mortgage rates. Credit scores affect | | | | The balance remaining on your existing mortgage, |
| your chance of being approved or denied a | | | | plays a role in determining your mortgage rates. Say |
| refinancing, the terms and conditions of the loan, and | | | | you are over 50% paid on your mortgage, with full and |
| the interest rate. | | | | on time payment history, you are nearly guaranteed a |
| Request a free credit report from each of the major 3 | | | | refinancing opportunity into a lower, money saving, |
| reporting agencies every year. Carefully take your | | | | interest rate. Homeowners wishing to refinance a |
| time and review every line of these reports for | | | | newer home loan will face more questions and |
| inaccuracies and discrepancies. For example, if a | | | | scrutiny from mortgage lenders and banks. They will |
| bankruptcy is showing on your rating, yet is over 7 | | | | wish to know everything about your current finances, |
| years old, that information should not be coming up in | | | | potential plans, and want copies of as many financial |
| your report. This would be a great example of why | | | | documents as possible. This is understandable as the |
| knowing and being familiar with your credit report is | | | | mortgage lender or bank will be facing more financial |
| very important. | | | | loss by taking on newer home loans for refinancing. |
| Payment history is the biggest factor in determining a | | | | -The Mortgage Lender |
| credit score. Homeowners who have been making | | | | The mortgage lender probably is the second biggest |
| regular, on time, payments, should only have positive | | | | factor in determining your mortgage interest rates. |
| gains in their credit rating. Some other things which | | | | Some of the bigger mortgage lenders and banks have |
| may be accounted for are how much you owe in | | | | the size, resources, and experience needed to obtain |
| debts, how many credit inquiries on your file, your | | | | the lowest mortgage rates possible. The big lenders |
| income, and how long your credit history goes back | | | | can afford to take on a little more risk, and negotiate a |
| for. | | | | little on the terms, rates, and conditions of the home |
| -Your Mortgage Payment History | | | | loan refinancing. Although, without a decent credit |
| Refinancing a mortgage with a bad credit score is not | | | | history, getting approved for refinancing from the larger |
| impossible, or even as hard, as it seems. Typically, | | | | companies can be harder, especially for new home |
| homeowners, regardless of credit, can save money | | | | loans with little to lose. Smaller companies on the other |
| through mortgage refinancing if they have been able to | | | | hand tend to take less chances with their limited |
| pay every home loan payment on time and in full. Your | | | | funding, and offer extremely competitive rates to |
| chances are even better if you have made payments | | | | qualified homeowners. Your personal situation will |
| which are more than the minimum required, or earlier | | | | determine the best lender for you. |