A Good Credit Rating isn't Good Enough When it Comes to Refinancing your Home Loan
- By Stuart Hunter
- Published February 5th, 2009
- Mortgage
- Unrated
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 interest rates plummeting, 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 30 year loan for $250,000, refinancing from 8 to one of the great interest rates in the 5 range that were reported in early 2009 would reduce monthly payments by nearly $500. Over the course of the entire 30 years of the loan, this would amount to over $170,000 in savings.
The majority of people, however, will not be able to qualify for a refinance loan and an even larger segment of the population will not be able to get approved for the best interest rates.
Having a good credit rating simply isn't good enough when it comes to getting the best rates on a mortgage 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 possible interest rates on their loan, borrowers will need a credit score of 740 or higher.
For years, people working to improve their credit scores have been searching for a way to turn a poor credit score into an average credit score or better. By taking credit scores below the 560 mark that many consider to be the cutoff for bad credit and
increasing them to 600, 700, or higher, people found they were able to significantly improve their quality of life. They were able to get into homes that were previously denied to them and qualify for auto loans or credit cards with sensible and manageable interest rates.
Today, it is not just those with low credit scores who could benefit from credit repair or other credit improvement services. As is evidenced by the current home loan situation, even those with decent credit scores may be able to benefit from pushing their credit scores even higher.
If you are looking to take advantage of the low interest rates, take some time to investigate a number of lenders and shop around for the best interest rates. And don't get down if you are turned away by one lender because there may still be others who will be happy to work with you. And if lenders are consistently rejecting your application or not offering the rates you want because of your credit , then making use of credit repair services like those provided by Lexington Law may be the first step you need to take in order to reach your goals.
The majority of people, however, will not be able to qualify for a refinance loan and an even larger segment of the population will not be able to get approved for the best interest rates.
Having a good credit rating simply isn't good enough when it comes to getting the best rates on a mortgage 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 possible interest rates on their loan, borrowers will need a credit score of 740 or higher.
For years, people working to improve their credit scores have been searching for a way to turn a poor credit score into an average credit score or better. By taking credit scores below the 560 mark that many consider to be the cutoff for bad credit and
Today, it is not just those with low credit scores who could benefit from credit repair or other credit improvement services. As is evidenced by the current home loan situation, even those with decent credit scores may be able to benefit from pushing their credit scores even higher.
If you are looking to take advantage of the low interest rates, take some time to investigate a number of lenders and shop around for the best interest rates. And don't get down if you are turned away by one lender because there may still be others who will be happy to work with you. And if lenders are consistently rejecting your application or not offering the rates you want because of your credit , then making use of credit repair services like those provided by Lexington Law may be the first step you need to take in order to reach your goals.