The simple fact is that those with the highest credit rating are the ones with the best chance of getting an excellent mortgage refinance rate.
Baltimore, Maryland (PRWEB) April 04, 2013
An impressive financial portfolio, good credit, and a stable work history- those are all considered by lenders when people are looking for mortgage refinance. But how does one qualify for the best rate? Mortgage refinance comparison provider Rate State explains two ways home owners can save thousands of dollars in interest with current economic changes in the home lending market.
First off is one’s credit history. This is one of the first things considered by mortgage refinance providers when people apply. The simple fact is that those with the highest credit scores are the ones with the best chance at getting an excellent mortgage refinance rate. The best place for one’s credit score to be is in the Very Good to Excellent categories- essentially, 720 and up. Even if being qualified for the best rates isn’t an option, mortgage refinance rates don’t vary widely between just barely acceptable credit and no credit at all. In fact, mortgage refinance rates are government mandated, meaning that people can get good rates even with a fair to poor credit rating.
Secondly, mortgage refinance providers consider the debt to income ratio of the person they are considering lending to. Having enough income to pay for a mortgage bill is necessary; mortgage refinance lenders want to see that monthly bills are no more than 40% of one’s monthly income. As such, don’t commit to large purchases, such as cars or boats, a few months before one gets a mortgage refinance- it increases the apparent risk of foreclosure or bankruptcy to the lender.
About Rate State:
Rate State is an online comparison tool that gives people the ability to compare mortgage refinance rates. The comparison tool is free, and gives people access to the best deals in the mortgage industry.