Question by Vindaloo99: what about mortgage refinancing nowadays?
I bought several houses in my time and therefore thought I was an “expert” on getting a good mortgage. Now I’m looking for a straight answer on the best refinance rate, and a mortgage broker says pricing on loans includes factors that “were not there even one year ago”, such as: FICO score, loan to value, loan amount, occupancy, etc.” Can a mortgage rate vary according to my FICO score (or would I just be rejected if my score is too low)? What’s going on? Why is it so hard to get a mortgage rate out of a broker or a web site?
btw, I have great credit, 80% equity, live in the house, and want to re-fi $ 117k, in NC.
Best answer:
Answer by src50
Most definitely your credit score will affect the deal you are offered. These are new times – the old easy credit is gone.
What do you think? Answer below!
Wait, if possible hold off for at least a quarter or half year if possible. Government intervention in the mortgage industry is probably not done and depending on the conditions they set for lenders it may improve your chances of a decent deal. Presently borrowers are being subjected to far more scrutiny than even a year ago. Things will change, but…back to my original advice…if you can wait for a while do so.
Keep in mind that mortgage companies do not go by the fico score.
They look at your reports in detail, along with your salary, and employment history.
Before you refi. Make sure that your credit cards are not using more than 30% of their available credit. Pay them to 0 2 weeks before you apply to refi if you can. I did that and got their lowest rate advertised.
/
I spoke with a woman the other day who refinanced her home at 4.75% for 40 years. I don’t know if there is a prepayment penalty and she didn’t mention anything about closing costs. Unless you really need the money I would urge you to hold off on borrowing unnecessarily. Besides, rates may go down further. The bank who has my mortgage called a few days ago about a refinance. The only thing I remember about qualifications is that they require a FICO of at least 700. I am not sure if it was just their requirement or the industry in general. Most mortgage brokers will shop your loan and match your qualifications with what is available. A good mortgage broker can make things move much more smoothly than going direct with a bank or mortgage company. They can often get a better interest rate or terms.
There are different types of mortgage rate refinance options available nowadays.
Adjustable rate mortgage -This is one very important type of mortgage rate refinance. This mortgage rate totally depends on the market condition. It goes up and down with the fluctuating market rates. If you decide on this kind of rate, for your refinancing, then your interest rate might go up in the middle of the term period.
The website below may provide some insight for you.
http://www.refinancing101.net
Good Luck….!