Are you looking into refinancing your mortgage? You’re not alone. We’ve had many questions regarding refinances lately and wanted to take a moment to discuss how you can get the best rate.
A couple of months ago, we covered the steps you should follow to refinance your mortgage. If you missed that post or would like to refresh your memory, you can find it here.
Below are a few steps to consider taking before refinancing to ensure you get the best rate.
- Spend some time raising your credit score. For conventional loans, people with credit scores of 760 and higher typically receive the best rates.
- Pay off some of your debt. Your debt-to-income ratio affects the interest rate you qualify for. Meaning, if you pay off some of that debt, you’ll likely qualify for a better rate. Typically, your debt-to-income ratio shouldn’t be higher than 36%.
- Increase your home’s value. Thinking of upgrading your home? Now may be the time to do it. Your loan-to-value ratio can have a big impact on your refinance rate.
Once you prepare for your refinance using the steps above, it’s time to move on to actually refinancing your mortgage.[bctt tweet=”People with credit scores of 760 and higher typically receive the best rates.” username=”MTGSpecialists”]
Research your options
This is the most valuable piece of advice we have for people looking to refinance their mortgages. Refinancing with your current lender doesn’t mean it will be any less work or that you’ll get a better rate.
Never assume your servicing lender will give you the best rate on your refinance. It’s important to meet with several lenders and look at different products to determine which is right for your situation.
Once you’ve met with a few lenders and discussed various mortgage products, take a moment to compare the rates and fees. But don’t stop there – too many people look for the lowest rate and assume that’s their best option, which isn’t always the case.
Let us ask you this, would you choose a contractor to work on your home based on price alone, or do you also consider things like their ability to communicate and past clients’ reviews? Mortgages shouldn’t be any different. While the interest rate is extremely important, don’t forget to consider whether the lender is willing to communicate and discuss your options with you.
Refinancing your mortgage with Mortgage Specialists
Our commitment to our clients extends above and beyond the industry standards. If you choose to refinance your home with us, we promise to provide you with some of the best rates and customer service around.
As a standard practice, we negotiate to get the best rates for our clients. You will always have someone on your side when working with us. And don’t just take our word for it, see what past clients say about working with us.
Interested in refinancing your mortgage with us? Give us a call at (402) 991-5153 whenever is most convenient for you to discuss your options. We’d love to hear from you!