Tag Archives: Mortgage

Refinancing a Mortgage: Is It the Right Time to Do It?

Refinance mortgagePeople who have existing home loans see refinancing as a means to reduce their monthly obligation to pay off what they owe. To do that successfully, however, there are things you have to consider and think about first. Here are some of them:

Establish your future goals

To find out whether refinancing is a right move, you must establish a clear goal ahead. Most homeowners who are planning to refinance their mortgage in Utah are good at considering and weighing their homeownership goals.

For you to commit to this deal fully, you have to be firm about what your plans are for your home. If you want to leave or move out after completing the payment, refinancing is not a good direction for you to even consider.

Review your credit score

A borrower’s credit history is one of the most important criteria mortgage lenders look at. The higher your credit score is, the better your chances of getting faster approval is too. If you’re wondering as to how you could improve your credit, you can do the following:

· Reduce and pay off your debts,

· Avoid applying for other payables,

· Pay your monthly obligations on time, and

· Stay away from risky investments.

Learn to compare rates

Most borrowers commit a major mistake of not looking enough at their options. In fact, many people just settle for their first inquiry without even making an effort of asking around. Although this may often require a lot of work and time, you must understand that by only making a comparison will you be able to determine which among the lenders can provide the best deal and program for you.

Be a smart property owner and learn what steps you could use to your advantage. Always consider looking at the pros and cons of each action you take because by only doing this can you come up with the best decision.

Shopping for a Mortgage Loan? Know These

Mortgage LoanNinety percent of lenders will consider your credit score to determine your creditworthiness before offering you a loan. While there are things you can do to improve your credit score, an average score will limit your ability to buy your dream home or qualify for a mortgage loan.

However, City Creek Mortgage says this shouldn’t stop you from applying. There are a number of things that improve your chances of getting a mortgage loan despite what your credit score says about you.

Pay Your Credit Cards

Having overdue balances lowers both your debt-to-income and credit utilization ratios. Paying your balances lowers your debt load and helps you save on the loan interest rates. You don’t have to pay everything at once, but pay them regularly to show you can manage your finances.

Check for Errors on Your Credit Reports

Obtain your credit report from one of the major credit bureaus and check for any errors. If you notice any inaccuracy, file for a dispute.

Shop Purposefully

Anyone can get excited about acquiring a new home; however, don’t let this overwhelm you as you search for your dream home. Get pre-approval for a mortgage before shopping for a house. This reduces your worries of getting pre-approval that doesn’t match the house of your choice.

Manage Your Credit

Moving to a new house may come with the desire to acquire new things. Several new credits under your accounts may raise questions, and the lender may not approve your application.

Acquiring mortgage pre-approval may seem to be your greatest worry for now. Keep paying back your loans in installments. Cut back on fixed expenses and save more. This will help improve your credit score and come in handy when you want to apply for other loans in future.

How Lending Companies Determine Mortgage Rates


MortgageInterest rates remain important in mortgage loans. The mortgage rate depends on the economic climate. The interest rate’s behavior is determined by factors connected to the loaning companies, buyers, and the stakeholders.

Mortgage experts help to carry out research on the rates in the market. With higher interest rates, fewer applicants get loan approval. Just recently, CNBC reported applications down by 3.5%, which may be because of the increase in mortgage rates.

Get a cheaper rate through the internet

The internet is a useful resource to anyone who wants to get a low or affordable mortgage rate. A simple search presents several options. Compare them, find the most flexible, and apply for it.

A trick to getting a low-interest mortgage is to have a higher down payment. City Creek Mortgage says you have the option to pay more fees and get a lower rate or get a higher rate and pay less for the closing costs.

Understanding the mortgage rate

There are many mortgage rate charts in the market. You’ll know the rates for a 30-year fixed loan and a five-year adjustable-rate mortgage, along with other options. Business Insider mentions 30-year fixed loans having an average rate of 3.87%.

The same article says the average rate for a five-year adjustable-rate mortgage is 2.96%. Lending companies may offer slightly different rates, of course.  Check with the credit union or bank that offers your preferred rates.

To get the best mortgage rate, make sure your credit score is good. An additional tip to have a good rate is to show you are financially stable. Show proof of income and employment.

For anyone looking to own a home, the plan starts with getting a good mortgage. Know your options and ask the experts before deciding.