Refinancing a Mortgage

The importance of your credit report and score doesn't fade once you've become a homeowner. Your report and score play a key role in your future mortgage options, including refinancing.

 

How Do I Best Manage My Mortgage?

Home loan programs and rates are constantly changing. And, what's good for you now may not be the best program for you in three years. There are times when you should leave your mortgage alone, but there are also times when you may benefit from refinancing.

See what a lender sees when you apply to refinance.

Get Your Free Credit Report and Score Now

No purchase or credit card required

Pay Your Mortgage on Time, Every Time

 

Review your credit report at least every 30 days to ensure your mortgage payment has been processed on time.

Keep Your Credit Score Climbing

 

You never know when you may need to refinance or buy a new home, having great credit helps ensure your options remain open.

Get Free Mortgage Check-Ups Regularly

 

Be sure to complete a quarterly assessment of rates and your current situation to make sure you're in the right home loan.

What to Expect Based on Your Credit Score

Under 620

  • May be challenging to get qualified
  • Expect a tough approval process that may require more paperwork
  • May be required to pay private mortgage insurance (PMI)
  • May be required to pay higher interest rates

620-739

  • May have a good chance to get approved
  • May be able to secure better rates
  • Should have access to more loan programs
  • May be required to pay private mortgage insurance (PMI)

740 and up

  • Considered the ideal applicant
  • Should receive the best rates and savings
  • Should have an easy approval process
  • Should have access to the best programs as well as terms and conditions

Tips When Managing Your Mortgage

  • Make extra payments. Split your single, monthly payment into two bi-weekly payments every other Friday (or whenever you get paid). If you did this for a year, you'd make 26 half-payments, which means you've made 13 full mortgage payments. Making one additional payment a year will save you thousands in interest over the life of the loan.
  • Shop your homeowners insurance. You should be shopping around for a better deal on homeowners insurance at least every two years. Shopping around is a great way to save extra money. If your mortgage payment includes taxes and insurance, be sure to notify your mortgage company. If your premium is significantly reduced you could request that your escrow be reduced or that you get a refund from your escrow account.
  • Don't change jobs. When qualifying for a loan, lenders look at your last two years of employment as well as your income. It's best to avoid switching jobs and gaps in employment.