Good Time to Refinance a Mortgage?
Homeowners should always keep an eye on interest rates because mortgage loan refinancing can be a great way to save money. For example if you have a $300,000 mortgage at 6% and are able to refinance into a home loan at 4.5%, you could be saving close to $500 a month. Getting approved for one of today’s low rate mortgage loans is far more difficult to achieve than it was a few years ago.
Since you never know when you will need to refinance for a lower rate, it is always a good idea to keep your credit scores as high as possible. This means you pay all your bills on time and don’t carry high balances on your credit card accounts. Borrowers who qualify for the best home loan rates go to people with good credit scores and reduced risk.
- Make your mortgage payment on time every month
- Pay your bills in a timely manner
- Consolidate credit card debt with a fixed second mortgage
- Try not to carry over 30% of the limit on your credit card
- Eliminate mortgage insurance when possible
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