Since 2020, mortgage rates have been at historical lows, and it doesn’t look like they will be on the rise anytime soon! If you’re a homeowner looking to refinance, now is the perfect time to secure the best mortgage rate.
Getting the best rate on a mortgage refinance loan takes some reorganization of your finances and a little patience. To make sure you are an ideal candidate for the lowest refinance rates, we’ve compiled five helpful tips to make the process easier.
Lower your monthly bills
Lowering your monthly bills can help you save money while lowering your debt-to-income ratio. This ratio is important because it’s the percentage of your income that goes toward paying your monthly debts, and it helps lenders determine how much you can borrow for your loan.
Make extra loan payments
It is important to make extra payments where you can to help lower your mortgage rate. Scheduling your mortgage payments bi-weekly can help you finish paying your mortgage off in half the time so you can enjoy the benefits of having access to plenty of home equity.
Consolidate your debt
Pay down your debt as soon as possible. If you have multiple credit card accounts or loans, consolidation will help simplify or lower payments. If you are having trouble paying off your debt, a personal loan may help. This loan is money borrowed from a lender that you pay back in monthly installments. On-time payments will help you build credit and ultimately improve your credit score.
Improve your credit score
The mortgage refinance rate offered to you will be heavily influenced by your credit score. To help raise your credit score, remove any errors from your credit report and monitor your score to ensure it’s accurate. To find out your score, you’ll likely need to use a third party credit monitoring service. If you aren’t sure which one to use, just ask us! We’d be happy to recommend a few.
Increase your income
Lastly, try to increase your income. You can start by looking for any available opportunities at your current job, like pay raises or overtime shifts. Do you have a side skill or hobby? Consider freelancing or side jobs for additional income.
With these helpful tips, securing a lower mortgage rate could be in your future! If you are looking to refinance your home or wondering what your rates look like, talk to one of our lenders today!