Refinancing your mortgage can be a good way to ease some money troubles or even prevent one. But there are some things you need to know before you take this route. Here are some tips so you can refinance your mortgage in Utah.
1. Make sure your current credit score is good.
Credit score matters in mortgage loans. You already have one, and your credit score helped in its approval. But if you’re getting a mortgage refinance, your current credit score will be scrutinized once more. So if your present score is not that high, consider working on it first before you even apply for the refinance.
2. Study your debt-to-income ratio.
You may already have an existing mortgage loan, but that doesn’t mean you can get a new one. The experts at the Altius Mortgage Group explains that a mortgage refinance has a stricter debt-to-income ratio that lenders follow. Even if you have a stable income and stable job and good savings history, lenders also look at your debt-to-income ratio. To get approval for a refinance, it should be 36 percent or less. So if you have some existing debt, pay first before applying for one.
3. Do your research and legwork for the best refinance rates.
Your current lender might offer to refinance, but that shouldn’t stop you from shopping for better refinance rates from other lenders. Remember that you can get an estimate from other lenders for free, so shop around and compare. This will help you make an informed decision.
Be Smart About Mortgage Refinance
Remember to treat a refinance loan just like any other loan type. You need to shop for the best one that fits you. Consider these tips before you decide to refinance your mortgage in Utah.