The Art of Home Refinancing
ByWhen home refinancing, consumers are always looking for the lowest refinance rates, lowest costs and of course completing their transaction at the best time. Timing the home refinancing market is difficult. Especially when you have had three years of record low rates and the trend for higher mortgage refinance rates seems to have set in.
We recommend the following refinance tips for borrowers looking to maximize the best refinance rates during any type of market.
1. Keep your credit scores above 700. This will give you more options and enable you to always qualify for the lowest refinance rates. Pay your bills on time and keep your credit card balances below 30% to maximize the best possible credit scores. You don’t need more than 5 trade lines so don’t be afraid to close down some charge cards at department stores that you are not using.
2. Avoid a refinance loan with a pre-payment penalty. By avoiding getting a loan that doesn’t charge a penalty for selling your home or mortgage refinancing maximizes your flexibility to take advantage of lower market rates.
3. Keep an open mind to conventional, VA and FHA loan programs. Home loan products change all the time so be open to a variety of home refinancing and chances are you will be rewarded with the best rates.
4. Strive for No Cost Refinancing – People like to think they will keep the same loan for 30-years but in reality most people are refinancing for cash out or lower rates every two or three years. Therefore no closing cost mortgage refinancing will save you more money.
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[...] who are stuck with an option ARM loan or a variable rate mortgage. If you have exhausted all home refinancing options, consider mortgage relief. Many borrowers have had success with a short refinance or loan [...]