If you’re considering a refinance on your home mortgage in the near future, here are some tips for getting the best possible refinanced mortgage rates:
Know Your Credit Score – and Raise It
If you don’t know your credit score, you don’t know what you’re getting yourself into with a refinance. Find out where you stand, and work toward raising your score, if you need to. A better credit score will mean better rates on any loan you take out.
Understand Your DTI
Your DTI – or debt-to-income ratio – is one that helps determine your eligibility for great loan rates. Have a lot of debt? Work on lowering it before considering your refinance.
Gather Your Paperwork and Keep It on Standby
By having all of your necessary documentation – credit reports, debt information, etc. – on hand, you’ll have everything you and your loan officer need to get you the best possible rates. An additional paperwork to have on hand includes several years of tax information, your most recent pay stubs, and all recent banking or investment information.
Pay Your Closing Costs in Cash
Your closing fees will be approximately two percent of your overall cost. While rolling these into your new loan is an option for those with enough equity, the smartest choice is to pay them off immediately. Doing so will result in lower interest rates and less overall debt.
You bargain hunt for the best deals on groceries, apparel, automotive purchases and more, so why not look for great rates by comparison shopping with your lender?
If you’re in the Knoxville area and looking for more information about refinanced mortgage rates, contact a relationship-centered community bank. Call or read more about us on our website to help you will all of your lending needs.