| The majority of people who refinance their mortgage | | | | credit record. This means that for every 30 day late |
| are doing so for one of two reasons. Either to get a | | | | payment to your credit cards that is recorded on your |
| lower interest rate or consolidate debt. Regardless of | | | | credit report your chances for a low interest rate |
| the reason why they are refinancing borrowers want | | | | decrease substantially. |
| the best mortgage refinance rate that they qualify for. | | | | Your debt to income ratio is also another very crucial |
| Although the radio and newspapers are filled with ads | | | | factor in getting your loan approved for low |
| for low mortgage rates how do you know if you are | | | | conforming rates. Your debt to income is basically all |
| actually going to qualify for them? | | | | of your bills including credit card, department store card, |
| In most cases if your mortgage payments have never | | | | auto loans and mortgage added up and divided by |
| been 30 days late and you are using under 90% of | | | | your gross pretax income. An acceptable number is |
| your home equity you will have a good chance to | | | | around 42% but some lenders will allow up to 50% |
| qualify for a low mortgage rate. However mortgage | | | | with good cash reserves in a bank account or |
| history is not the only factor in determining your | | | | retirement account. |
| mortgage refinance rate. Your consumer credit history | | | | Although there are many more factors in determining |
| is also going to play a role in your loan rate as will your | | | | your rate these are some of the major ones. But your |
| Debt To To income Ratio. | | | | best chances for the best rate come when you shop |
| Most conforming loans will be denied if the borrower | | | | around and compare offers from at least three |
| has numerous consumer credit late payments on their | | | | reputable mortgage companies. |