When you want to reduce your monthly expenses in order to have more money "left over" at the end of each month, there are never any simple answers. Money is tight all around for a lot of people, and it is not always easy to get access to the cash you need.
If you are a homeowner, you just may be in luck, however: refinancing your home at a lower interest rate or at a longer repayment period than you have with your existing mortgage loan could mean big savings each month. With improved cash flow, you will have more money left over each month to spend it on the things you need or want most.
Before going for a refinance mortgage loan, it is a good idea to learn more about how to secure the lowest interest rates on these types of loans. There are definite things you can do to reduce the rates for which you qualify.
If you want to refinance mortgage loans at low interest rates, these 3 tips can help:
1. Know your credit (FICO) score going into negotiations:
Start by being prepared in terms of your knowledge about your own financial and credit situation. For example, order your credit reports from all 4 of the big credit reporting bureaus. Remember, your score will differ a bit from one to the next. Also, the particular details of your financial and credit history will vary among the different reports. Become familiar with all of the important line items on each report and take notes where necessary.
2. Understand which other factors – besides your credit score – they will consider:
If your credit score is not in the Tier One (or excellent) category, you are probably not going to be offered the lowest-possible loan rates that you see advertised on the lender's website or in their store window. However, some banks and other lenders actually specialize in working with fair-credit or bad-credit mortgage refinance borrowers. So, if your credit score is not perfect, when you talk to candidate lenders find out what other factors they will consider when determining your creditworthiness.
3. Be bold about stating your case for the best-possible rate:
Finally, be confident and bold about telling the lenders you apply to why you deserve the very best interest rate. The truth is that every lender has some "play" in the rates they offer you, regardless of your credit score. Ask them what it will take to qualify for their lowest rate.
Bonus tip: be sure to apply for a refinance loan with at least 5 refinancing lenders. Doing so will greatly improve your chances of qualifying for the best rate.