* To help pay off debt.
* To finance other investments, such as the purchase of more property or renovation costs.
* To pay for children’s education or other large purchases.
Before you dive into hunting for the most competitive mortgage rates, it’s important you contact a mortgage professional to guide you along the way. A mortgage expert can help you plan and budget, and find the best loan for your needs and financial goals. Everyone’s needs are unique, and a mortgage expert will be able to give you personalized advice.
So, what is the best way to get a low mortgage rate? Here are some ideas!
* Raise your credit score: Many lenders require a minimum credit score to even approve your mortgage, but if you have a higher credit score (higher than 740), then you are more likely to get lower refinance rates.
* Be organized: To apply for refinancing, you will have to present your credit reports, as well as two years of tax returns, recent bank and investment statements, and pay stubs. Having all your financial documentation organized will ease the process of applying for refinancing.
* Lower your debt-to-income ratio: In addition to helping raise your credit score, paying your bills and credit card balances on time will help you get debt under control. If your debt-to-income ratio is too high, you may face higher mortgage rates or be denied for refinancing.
* Do your research: You can begin researching online even before you speak to a mortgage expert. Compare thoroughly the mortgage rates offered in order to find the lowest rate and the best loan program for you.
* Choose the best loan term: Your loan term (for instance, 10,15, or 30 years) will determine the amount of your mortgage payments. Choosing a 30-year term will result in lower payments.
* Budget: If you are refinancing, you will have to pay closing costs as well as any lender fees and other fees, including appraisal and legal advice. Make sure you budget for these costs while planning your refinance.
By researching mortgage experts and enlisting the help of one, you can refinance smoothly and find a low mortgage rate to help you pay off debt or purchase further investments!
source: northwoodmortgage.com
