6 Factors That Affect Refinance Mortgage Rates

6 Factors That Affect Refinance Mortgage Rates post image

There are number of factors that affect refinance rate mortgage. You have to make higher monthly payments if the refinance rate mortgage is more. Therefore, it is necessary to know about the factors that affect refinance mortgage rates. In this article we will discuss about six factors that affect the best refinance mortgage rate.

Factors affecting refinance mortgage rate

The six factors that affect refinance rate mortgage are given below:

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Credit Scores: A major factor that affects the refinance rate mortgage is your credit rating. Credit scores are reflected on your credit reports. You can obtain credit reports from the three major credit bureaus every year. If you have good credit report then you will get lower interest rate. But, if you have a bad credit rating, then you have to pay higher rates. Therefore, it is important that you make your payments on time. Late payments have negative impact on the credit score. You can negotiate with the creditor to extend the deadline if are not being able to make payments on time.

Downpayment: If you are making a large down payment on the mortgage refinancing, then the lenders will offer you low refinance rate. A down payment of 20% will allow you to get lowest refinance rate. But with 5% down payment, the lenders will charge high refinance rate.

Amount of debt: The length and amount of the mortgage also affect the refinance rate mortgage. If you want to pay a fixed-rate on the refinanced loan then the interest rate is normally higher as compared to adjustable-rate.

Inflation: Another factor which affects the refinance rate is inflation. Inflation increases the cost of goods and the interest rate on money. In these circumstances, The Federal Reserve intervenes to lower the interest rates. Thereby the mortgage rates are also reduced.

Percentage Complete: Finally, find out how much more you have to pay for your current mortgage. If you have already paid 50% on your current mortgage and you have made the monthly mortgage payments on time, then you will be offered best refinanced rates by your preferred refinancing company.

Source: Try to take the loan from well-established refinancing providers because they generally charge low interest rate on the loans and also provide best service.

You can know about refinance rate mortgage through online also. But for that you have to give you have to give personal information. Therefore, make sure that you are dealing with a good firm that will keep your personal information secure.

  • loans Australia August 27, 2010, 2:07 am

    good information. all factors are explained in detail. thanks

  • Antelope Valley Houses August 27, 2010, 4:24 am

    Thanks for the info. It was well written. I hope you don’t mind if I printed your article to give to a couple of my clients.

  • Largo FL Notary Public August 31, 2010, 2:00 pm

    Having a good credit score is so important. As a Realtor I can tell you that dealing with buyers with credit scores of less than about 650 is a real nightmare. They are always charged high interest rates.

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  • Marysville Homes September 1, 2010, 1:33 am

    The same goes about the amount of debt. Quite often buyers don’t realize that revolving debt on their credit cards is reported to credit agencies. Even if they pay them off in full every month! The statement balance is counted toward their total debt. It may make sense for a potential homebuyer to stay away from credit cards a month before buying (or refinancing). (Or pay the balance in full BEFORE the statement is received). From my experience it can increase the credit score 50+ points.

    Thanks for the article.

  • Real Estate Investing For Beginners September 1, 2010, 10:27 am

    Very informative. Just what debt settlers need. Thanks for posting this up.

  • Florida Speeding Fines September 1, 2010, 4:07 pm

    Very informative article! This is a big help to those who are planning to refinance their mortgage rates. Cheers!

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  • jasper September 5, 2010, 6:45 pm

    I am looking to remortgage at the moment you have answered a lot of my questions thanks.

  • Las Vegas Homes for Sale September 6, 2010, 4:34 am

    @Marysville very true. Most people don’t realize that just having their credit pulled over and over can affect their credit rating in a negative way.

  • Petrus Fajar Subekti September 6, 2010, 11:24 pm

    Hmm these factors are really important, i can estimate how to do best action so i can get the most valuable thing i have to do before mortgage

  • Allied Van Lines Calgary September 7, 2010, 10:40 pm

    Very clear and concise info about what can be a difficult subject. Great job.

  • Trust Deeds September 7, 2010, 10:48 pm

    I’m glad my credit score is perfect, and I aim to keep it this way. Just don’t spend beyond your means. That’s the “secret” to keep a good credit score.

  • Sarasota Personal Injury Lawyer September 11, 2010, 9:54 am

    Refinancing mortgages can be very tricky! Very good break down of important things to consider in refinancing! Very helpful! Thanks…

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  • Florida Speeding Ticket September 21, 2010, 6:01 pm

    This is good news to those who want to refinance their mortgage. A perfect guide for everyone. Thanks for this!

  • Justin September 22, 2010, 5:54 am

    Pretty good post, thank’s for sharing these great tips. I have learned a lot, you can be sure I will come back and tell my friends, keep up the good work !

  • Mortgage Boise October 1, 2010, 5:22 pm

    excellently written post…i was planning for remortgage and this post answered all my questions and helped clear most of my misconceptions..thanks for this post…keep up the good work.

  • Vigneshwara Developers October 11, 2010, 6:33 pm

    The way you have presented all the 6 points are amazing and all the points you have considered are very much important and useful too..Thanks for sharing such an informative post with us.

  • max June 1, 2011, 8:57 pm

    Thank you for this useful tips and tricks. For sure I’ll apply this.

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  • Loans in Australia July 13, 2011, 2:51 pm

    If more people read and followed this helpful information before taking out a loan then there would be much less foreclosures.


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