Your Credit and Refinancing Your Mortgage

Although we are still coming through crazy economic times, mortgage rates are currently at an all time low leaving many wondering if now may be the best time to buy a house. Rates have recently dipped below 5% for a 30 year fixed and even lower for a 15-year fixed mortgage. These exceptionally low rates mean it may be the best time to buy a house and definitely an opportune time to refinance your mortgage.

However, many people may not qualify for a new loan when their credit scores or job history are taken into consideration. As always, a good credit history will give you a greater advantage. One of the first things a mortgage broker will find out is what your credit score is.

My time spent at a collection agency has helped me see the benefits afforded to consumers who properly manage their credit scores. Having good credit does matter and it is never too late to begin strengthening your credit score. Even if you have filed for bankruptcy, you can begin to rebuild your credit the day your case is closed. Simple, yet responsible habits like paying your bills on time, using only a small portion of your available credit and not applying for too much credit at once can give you a strong score and more opportunity. Properly managing your credit score will provide you with more chances to obtain a solid financial future.    

If are looking to refinance your mortgage at this time, be sure to consider the costs of refinancing against how long it will take you to recoup those costs. If you are not planning to be in your home long enough to recover expenditures, refinancing could be a bad idea. The longer you stay in your home exceeding the break-even point of your total refinancing costs, the more you will benefit. Be sure you are on the road to a solid financial future by properly managing your credit score in order to take advantage of unique prospects as the economy gets back on track.  

As always, pay your bills on time, make good on any financial commitment that you make and if you do get in trouble with paying your bills, don’t ignore the calls. You can work out arrangements to make payments and keep your credit intact, making it easier to refinance and do other things with your money and credit.