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How to Get a Better Mortgage Rate with Refinancing

How to Get a Better Mortgage Rate with Refinancing


How to Get a Better Mortgage Rate with Refinancing

Mortgage rates have fallen throughout 2019 and continue to hold steady at a very attractive rate. Not only is this exciting news for people shopping for a mortgage, the lower rates can also benefit those who already have one.

If you have considered refinancing your existing mortgage to obtain a better rate, now is a good time to move forward with that. Reducing your interest rate by even one-half of one percent could save you a significant amount of money over the life of your loan.

Before you start looking for a better mortgage, however, it’s important to position yourself to get the lowest possible interest rate. Below are some tips on how you can do that.

Obtain a Copy of Your Credit Report to Check for Accuracy

The Fair Credit Reporting Act allows consumers to receive a free copy of their credit report from each of the major credit reporting agencies once every 12 months. The names of these agencies are Equifax, Experian, and TransUnion.

When you want to get a better mortgage, making sure that your credit report is accurate is a good way to start. If you spot any inaccuracies, you should notify the appropriate credit reporting agency in writing.

Under the mandates of the Fair Credit Reporting Act, the agency must correct the error within 30 days or inform you in writing of why it cannot do so.

Try to Get Your Credit Score as High as Possible

You also need to pay attention to the three-digit score included with your credit report. This is your credit score, a figure that can make or break your attempt at refinancing.

Although each of the three credit reporting agencies does things a bit differently, credit scores typically range from 300 to 850. The higher the number, the greater the chance you have of obtaining a better mortgage through refinancing.

Credit reporting agencies use the following algorithms when assigning consumer credit scores:

  • Timeliness of payments since credit reporting agencies begin reflecting late payments once you have gone 30 or more days past due.
  • The total amount you owe between all accounts.
  • How long you have maintained a credit history.
  • The type of credit you carry such as revolving credit cards and installment loans.
  • How many new accounts you have opened in the last year.

Lenders are especially interested in seeing how much of your available credit you actually use. A consumer who pays his or her bills on time but is using 95 percent of available credit is not a good risk.

That is because this consumer may be living on credit and likely won’t be able to keep up with timely payments much longer. From a lender’s perspective, a loan applicant should use less than 30 percent of the credit available to him or her.

Another thing you can do in addition to keeping your credit utilization low is pay off some accounts entirely. This is the fastest and easiest way to see a significant jump in your credit score.

Is Refinancing Right for You?

If you’re ready for a better mortgage, we at Mortgage Investors Group are here to help. Please contact us at 1-800-489-8910 to learn more about your refinance options.

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Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at migonline.com Legal Information.

MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:

  • Rates are subject to change at any time.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Payments will vary based on program selection, current rates, property location, etc.
  • Not all programs are available in all states.
  • Some loan programs may not be available to first time home buyers.
  • Terms and conditions apply, which may include restrictions or limits per loan program.
  • Information is generally based on primary residence occupancy with no cash out when refinancing.
  • Unless otherwise stated, terms shown are estimates based in part on credit score of 700 or higher; owner occupancy, escrow account is established for taxes and insurance(s); debt-to-income ratio no higher than 43.0%; PMI applies to conventional loan programs over 80.0% LTV; VA,FHA & RD require insuring fees included in loan and/or payment; fixed rate, 30 year term.

An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020