Refinance Rate: How to Compare Rates
- Author Scott A Clark
- Published January 30, 2010
- Word count 448
The best way to save is to take advantage of refinancing your loan. Refinance mortgage rates are generally lower than primary loan rates. Refinancing means you are getting a fresh loan by repaying the old one. The loan amount is the same but the interest rate is lower.
Requirements for a Low Refinance Rate
Taking advantage of low rates of refinancing is not easy as the credit standards have stiffened and you might not qualify for the loan. Some of the requirements are:
Equity - the lenders are willing to offer low rates to those who have 5% equity in their homes and whose credit score is more than 680. Those who have 5% equity but credit score is less will have to pay more.
Conforming loans - the loans that can be brought by Fannie Mae and Freddie Mac and are resold to investors are called conforming loans. Loans of $417,000 or less are considered conforming loans, higher ones are known as jumbo loans.
A good credit score - credit score is something that can get you the best refinance rates. For the lowest refinance rate you need to get a FICO score of at least 680.
Comparing Refinance Rates
Comparing refinance rates is indispensable when you have equity in your home. A good idea about the market rates and the various lenders will help you to get your mortgage approved at the lowest rates, negotiate terms and conditions that aids in consolidation of debt. The procedure for finding the rate of refinancing is very simple. You just need to fill out online forms to refinance mortgage loans. It can help you compare rates provided by various lenders so you can decide which lender is offering the best rates. Another method of comparing rates is the refinance calculator. Also, various websites provide daily updates and rate comparisons.
Getting the Best Refinance Rates
Getting refinance rates can be difficult as they vary a lot. The type of rate you will get will depend on your credit rating. The following are tips for getting the best rates:
Keep your credit rating as good as possible. Customers with excellent credit ratings get the lowest rates, while those with poor credit ratings get higher rates.
In order to choose the right company, shop around for rates. This will get you the optimum deal and avoid confusion.
You can have access to a large number of calculators, online forms, comparative analysis which can give you an insight as to which company is providing the lowest rates. You should surf some sites that give a good glimpse of the market rates.
Keep an eye on the fluctuations in the market. Refinance only when rates are at their lowest.
There are no posted comments.
- How To Pay Off Your Mortgage in 5-7 Years
- How To Remove a Bankruptcy From Your Credit History
- What Credit Score Will Get You A Mortgage?
- What are CAP rates (and why should I care)?
- Exactly how to Select the most effective and also Right Billing Factoring Company?
- How to remove your name from debt review
- How to Choose the Right Mortgage
- How To Find The Right Texas Mortgage Lender
- How a Mortgage Lender Can Help You
- 5 Things To Expect When Meeting with An Investor
- Remortgaging- is it the best option?
- 4 Mistakes You Should Avoid When Listing With An Agent In San Jose
- How to Create Marketable Commercial Mortgage Notes
- Here’s How Debt Consolidation Can Help You
- Home Loan Programs: How Recent Medical School Graduates Can Qualify
- VA Home Loan Programs: How Veterans in Need Can Benefit
- The 30-Second Trick for Australia Mortgages
- Reap Huge Benefits from USDA Home Loans
- Many Benefits of Veteran Loans
- All You Need To Know About HUD 184
- Are House Prices Canada's New Successful Birth Control?
- FHA Lowers the Monthly Mortgage Premiums - Should You Refinance Your FHA Loan?
- Credit Card Basics: How and When to Use Them
- Who Can Benefit from an Offset Mortgage?
- Top 7 Tips for Buy to Let Mortgages
- Over One-Third of Income Spent on Mortgages or Rent in Many Households
- Tips for Mortgages
- Basics of How to Compare Loans: Understanding Index and Margin in Adjustable-Rate Mortgage Loans
- Analyzing the Terms and Conditions for a Mortgages Comparison
- How to Maximize the Way You Use Your Visa Credit Card