One of the aspects Rate State stresses is the need to look at credit scores beforehand.
Seattle, Washington (PRWEB) April 10, 2013
Refinancing is an excellent choice for many people, especially with the low rates available. However, it may not make as much sense as it appears. Many people use refinancing as a way to consolidate debt, making it easier to pay monthly expenses, or trying to secure a lower interest rate. In their guide, Rate State shows what mortgage refinance companies consider when looking at an applicant, as well as things people can do to improve their chances of getting good mortgage refinance rates.
One of the aspects Rate State stresses is the need to look at credit scores beforehand. If the best rate is desired, prospective homeowners need to have very good to excellent credit. For FICA scores, this means a score between 720 and the top, 850. Depending on when the mortgage was first financed or refinanced, people can save thousands over the course of their loan through a refinance, but first they need to count closing costs.
Closing costs are the costs associated with refinancing a mortgage. While only a fraction of the size of the mortgage itself, closing costs need to be seriously considered versus monthly savings. A high value mortgage can have as much as three thousand in closing costs; Rate State recommends that a mortgage refinance should only be pursued if the money saved every month can pay for the closing costs within 24 months.
About Rate State:
Rate State provides a mortgage refinance comparison tool that gives people the chance to save thousands on their current mortgage by comparing their mortgage refinance options. By connecting homeowners with dozens of mortgage refinancers, Rate State gives homeowners the ability to get the best rates. Visit http://www.ratestate.com/ for more