A 700 Credit Rating isn't Good Enough When Refinancing your Home Loan
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 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 lower monthly payments by nearly $500. Over the course of the entire loan, this amounts to over $170,000 worth of savings.
The majority of 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 good credit rating simply isn't 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 rates , borrowers will need a credit score of 740 or better.
For years, people looking to improve their credit score have been trying to find for a way to turn a bad credit score into an average credit score or better. By taking credit scores in the 500 range or lower and increasing them to the mid to high 600s, people discovered that they were able to significantly improve their quality of life. They were able to get approved for home loans that were previously denied to them and qualify for loans and credit cards with sensible and manageable interest rates.
Today, it is not just those with poor credit scores who could benefit from credit repair or other credit improvement services. As is evidenced by the current refinancing market, even those with above average 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 variety of lenders and shop around for the best interest rates. And don't get discouraged if you get rejected by one lender because there may still be another who would be happy to help you. And if lenders are continually rejecting your application or not offering the rates you are looking for because of your credit score, 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 accomplish your goals.