When we talk about your mortgage refi in Longview, TX, it is, essentially, trading in your current mortgage with a new one. Why would you do that? Well, for some practical reasons. For instance, you might find better interest rates in the market, giving benefits such as an opportunity to save and to pay off your loan faster.
Here are some tips that may come in handy when you decide to apply for a mortgage refi in Longview, TX:
Your home’s equity should be healthy. You have to make sure that your home has enough equity. If your house is now worth less than it was when you started your mortgage, then it does not make sense to refinance it. So, make sure you tackle this thing thoroughly with your mortgage broker.
Healthy credit score. Before you pick up the phone and talk to a lender or broker for mortgage refi in Longview, TX, check your credit score first. It is important to note that lenders have tightened their standards for loan approval in recent history, which is why you have to know your standing. If you find out your credit score isn’t that promising, take action to ensure your credit score improves before application.
Make sure to improve your debt-to-income ratio. It is one of the criteria lenders look into when approving or denying a mortgage refinance application, so make sure you look into the details of your DTI before your application. Your DTI should be 36% or less (though some consider up to 43%). You can have your DTI data by dividing your total monthly payments by your gross monthly income.
Private mortgage insurance. If you have less than 20% equity in your home when you refinance, you will pay private mortgage insurance or PMI. Your lender can readily assist you with whether or not you still need to pay for PMI; you should be able to figure out how much it will add to your housing payments that easily.
If you are looking for a reputable broker to help you with your mortgage refi in Longview, TX, look no further than HomePlus Mortgage.