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- A Good Credit Rating isn't Good Enough When Refinancing your Home Loan
A Good Credit Rating isn't Good Enough When Refinancing your Home Loan
- By Stuart Hunter
- Published 02/5/2009
- Mortgages
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Stuart Hunter
Providing credit repair services since 1991, Lexington Law has helped over 500,000 clients legally take on their credit. Last year alone, Lexington Law helped clients remove over 600,000 negative items from their credit reports.
View all articles by Stuart Hunter
With mortgage rates falling, homeowners are flocking to lenders with hopes of refinancing their home loans at a lower Interest rate and saving loads of cash in the process. On a $250,000 30 year loan, refinancing from an 8 interest rate to the record lows in the 5 range that were reported in early January, 2009 would lower monthly payments by nearly $500. Over the course of the entire loan, this would amount to over $170,000 worth of savings.
Most people, however, will not be able to qualify for a refinance loan and an even larger percentage will not be able to get approved for the best interest rates.
Having a better than average credit rating isn't enough when it comes to getting approved for the best rates on a refinancing loan. Most people consider a 720 Credit Score to be a good score, says Chris Freemott, president of All American Mortgage, but to get the best rates , borrowers will need a Credit rating of 740 or higher.
For years,
consumers looking to increase their credit score have been trying to find for a way to turn a low credit score into a fair credit score or better. By taking credit scores in the 500 range or lower and increasing them to 650 and above, people discovered that they were able to significantly improve their standard of living. They were able to get approved for mortgage loans that were previously out of reach and qualify for loans and credit cards with reasonable and manageable interest rates.
Today, a shift has been made where it is not just those with poor credit who could see benefit from credit repair or other credit improvement services. As is evidenced by the current refinancing market, even those with average credit scores may be able to benefit from pushing their credit scores even higher.
For those homepwners who are looking to take advantage of the low interest rates, take some time to research a number of lenders and shop around for the best interest rates. Don't get discouraged if you get rejected by one lender because there may still be others who would be happy to help you. And if lenders are consistently rejecting your application or not offering the rates you are looking for because of your credit rating, then making use of credit repair services like those provided by Lexington Law, the trusted leaders in credit repair, may be the first step you need to take in order to accomplish your goals.
Most people, however, will not be able to qualify for a refinance loan and an even larger percentage will not be able to get approved for the best interest rates.
Having a better than average credit rating isn't enough when it comes to getting approved for the best rates on a refinancing loan. Most people consider a 720 Credit Score to be a good score, says Chris Freemott, president of All American Mortgage, but to get the best rates , borrowers will need a Credit rating of 740 or higher.
For years,
Today, a shift has been made where it is not just those with poor credit who could see benefit from credit repair or other credit improvement services. As is evidenced by the current refinancing market, even those with average credit scores may be able to benefit from pushing their credit scores even higher.
For those homepwners who are looking to take advantage of the low interest rates, take some time to research a number of lenders and shop around for the best interest rates. Don't get discouraged if you get rejected by one lender because there may still be others who would be happy to help you. And if lenders are consistently rejecting your application or not offering the rates you are looking for because of your credit rating, then making use of credit repair services like those provided by Lexington Law, the trusted leaders in credit repair, may be the first step you need to take in order to accomplish your goals.
