Refinance Mortgage Rates Are Not Just Determined By Credit Score Alone

By Darin Sewell

Using a home mortgage refinance is a excellent way to get money to fund a home improvement project, send your kids to college or just get a lower monthly payment. When refinancing many homeowners often wonder if they will qualify for the low refinance mortgage rates they hear advertised and see in the local newspaper.

When you apply for a home mortgage the lender will collect your financial information and pull your credit. Your credit score will be a major determining factor in what refinance mortgage rates are offered to you as a borrower, but it they are not the only factor. Your lender will be looking at numerous things to determine your eligibility for a loan. These will mainly include Debt To Income Ratios, type of loan documentation, Loan to value of the property, mortgage payment history and your assets.

Today almost all conforming loan decisions are made through computerized automated systems so having a mortgage lender that knows these systems well will help you qualify for your home loan, even with a lower credit score. The computer underwriting systems will look at the overall borrower and loan profile, so having a lower credit score but a low loan to value and debt ratios will more then likely allow your to qualify for low refinance mortgage rates while in comparison someone with a 720 credit score but a high debt ratio and looking for 95% of their properties value may get declined for a low rate mortgage because of a perceived high risk factor.

Although credit scores are a large factor in determining refinance mortgage rates they are not the only piece of the puzzle. So when it comes time to refinance make sure to you have a good mortgage lender to assist you in the process.

Gain valuable knowledge on How To Refinance a Mortgage for the lowest Mortgage Refinance Rates
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