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Review your Credit Report
Why it is important to check your credit score when preparing to refinance your mortgage
Refinancing is just like requesting a new loan. Except that you’re specifically requesting a loan with better terms and rates, so you must make sure all your credit information is correct.
Your credit report is based on your income, debt levels, payment history and other information gathered by the three credit bureaus (Experian, Equifax and TransUnion). From that they calculate your credit score and assign a number between 300 and 850. 850 is the best.
Lenders use that score to determine whether to accept a refinance loan application and the rate they will charge. That’s why it’s important to make sure your information is correct. You’re entitled to a free credit report once a year from each of the three credit bureaus.
The higher your credit score, the less you spend |
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Credit Rating |
Interest Rate |
Monthly Payment |
760-850 |
6.179% |
$1,833 |
700-759 |
6.401% |
$1,877 |
660-699 |
6.685% |
$1,933 |
Figures are based on payments for a $300,000 mortgage |
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