Did you know you can refinance your house without the lender even looking at your credit scores or your credit report? This type of refinance is called a streamline refinance. Most lenders will only look at your mortgage payment history; typically your mortgage history has to be in good standing. So you could actually have bad credit and refinance your house.
With interest rates being upper 4ish range now, it might make sense for you to refinance your current mortgage loan. Typically you don’t want to refinance your home unless you can get the interest rate down 1.5%. You must also plan on staying in the home for about 10 years or longer. The reason for this is the cost of refinancing takes about 10 years to recover.
You also want to make sure you refinance your home as early in the year as possible. The earlier you refinance your house; fewer taxes will need to be rolled into your current note. Taxes are due at the end of the year, so if you also refinance late December usually your current mortgage company has paid your taxes by then. Just make sure before you proceed in late December it has been done by the current lien holder.
With the current rates you could possibly save around $100 to $150 dollars a month with your mortgage payment. These types of savings could help you save more during not so good economic times. You never know what could come up during a recession.
If you are uncertain if you have some late mortgage payments you might check your free credit report before you call a lender. You definitely don’t want to be blind when approaching a lender to refinance your home.
CreditGuruCreditScoreQuick.com
