Just like any other borrowers, you would want to get the best rates on mortgage refinance, Phoenix, AZ, as it provides an opportunity for you to save some good amount of money. Even a half percentage point rate reduction can translate to thousands of dollars in savings.
In the interest of helping you find the best possible deal on mortgage refinance, Phoenix, AZ, we are sharing below some strategies that have been proven to be effective for years.
Shop and compare multiple lenders. With easy access to technology, particularly to the internet, shopping around and comparing deals from different lenders is one effective strategy that helps you the best one possible from a list of options. Comparison websites offer a comprehensive listing of prospective lenders to choose from, which include business profiles, current rates, among others. So, allocate some time to browsing the internet, you will be surprised how it is going to get you an upper hand in the market.
Achieve the best credit score possible before application. Before you apply for a mortgage refinancing, make sure you have the best credit score possible. It is one of the factors affecting interest rates. Borrowers usually can secure the best rates for conforming refinances with a 740 or higher credit score. That’s the score you should aim for.
Lock in your target rate when you find out. Again, the good thing about internet technology is that it allows you to access several free online tools, which let you know the rates you qualify for in just a few minutes. Using these tools, you can lock-in your target rate, thereby not losing the opportunity to get the deal you want even if there’s a fluctuation until then. A rate lock usually lasts about 30 days, which buys you time from the moment they give you an offer to the time it takes the loan to close.
Pay close attention to your loan-to-value ratio. An LTV ratio is computed by dividing the amount borrowed by the appraised value of the property. For example, if you purchase a home appraised at USD 100k and you make a 20k down payment, you borrow USD 80K, which results in an LTV ratio of 80%. Take note that the lower the percentage means the better LTV. That means, the higher the down payment, the better the chances of getting the best rates.
Consider changing the mortgage terms. If you are planning to get the traditional 30-year fixed mortgage, you may want to reconsider that option. That is because short-term mortgages allow you to get a better rate. Also, you get to pay off your existing mortgage much faster.
Do you want to know more about finding the best rates on mortgage refinance, Phoenix, AZ? Talk to a mortgage expert from HomePlus today.
Call us at 800-810-7587.