Refinance Home Loan Rates – High Levels of Debt Hurting Your Refinance
Posted on | February 8, 2010 | No Comments
Refinance home loan rates have been extremely low for the entire year of 2010. Unfortunately, there are many Americans who are seeing that high levels of debt are hurting their possibility to refinance. If you have a debt to income ratio of more than 50% you are going to find it hard to qualify for a very low interest rate.
Many American homeowners are looking to refinance today so they can save a significant amount of money. By refinancing to an interest rate below 5% you could end up saving hundreds of dollars a month on your mortgage. This money could go towards paying other bills and helping you to dig out of debt.
What is important to understand that is getting a mortgage interest rate below 5% can be difficult. If you have very little equity in your home and a credit score below 740 you are going to find great difficulty getting a low mortgage interest rates in the current economic environment. You are going to need to prove that you are a good credit borrower.
One of the only things you can do to lower the overall interest rate on any of your loans is to improve your credit score. Unfortunately, improving your credit score can take months and possibly even years. It will be wise to start improving your credit as soon as possible.
Author: Heather Best
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