Even if you’re paying off your home loan with little to no setbacks, there may be a time when you wish you can just get it over with and spend your repayment money on something else. A lower interest rate can help in this regard. Here are some tips.
Mortgage Companies
Browse the Internet for mortgage lenders, real estate companies, and even real estate boards in your area. Look into the current average interest rate in the market and jot every change down. If the rate drops to a favorable number, call your lender and ask if you can have your loan refinanced.
Debt-to-Income Ratio
One of the main qualities that could nab you a chance of having your mortgage refinanced is having a low debt-to-income ratio. This means that you can be trusted enough to be able to sufficiently pay for your new loan without having your debt reach dangerous levels. Lenders typically approve refinance for people with a 36 percent ratio or lower.
Improve Value
To refinance, your home will need to be appraised to determine if you’ve paid off enough of the total cost of your house to qualify. An efficient way to improve your home value for appraisal is to do some renovations or repairs on it.
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