If you’re like most people in Utah, you’re most likely shopping around for the lowest mortgage refinance rate. However, it takes a little bit of time and effort before you can find the best refinancing options.
Most people think the best way to go about it is to go to their existing lender and ask for refinancing. However, that’s not always the most beneficial thing to do.
If you want to land the lowest refinancing rates you can get in Utah, remember to do the following.
1. Improve your credit score.
Lenders normally approve mortgage refinancing for borrowers with a credit score of 620 and up, but you’ll need at least 740 to score the best rates. Also, make sure you have a low debt-to-income ratio, as having a lot of other loans could hurt your chances of getting a lower rate.
2. Shop around.
There are plenty of online tools that allow you to look up multiple lenders and compare their rates against each other, such as Bankrate.com and LendingTree. Keep in mind, though, that the rate you will be offered will depend on your own personal circumstances.
3. Build home equity.
Increasing the value of your home can help drive down your refinancing rates. One of the cheapest ways to do so is to invest in home improvement projects, which don’t have to be expensive. For instance, a minor landscaping project worth $500 can vastly increase your home’s curb appeal.
4. Understand what you’re getting into.
A no-cost or low-cost closing doesn’t always mean you’re getting lower rates. Most of the time, you’re only rolling over the closing costs to refinancing, and you’re actually going to have to pay more in interest over the lifetime of the loan. Knowing what deal you’re getting into can greatly help you save on interest rates a little bit more.
Looking for the best refinancing option for you may take up more effort than just going with what your current lender offers you. However, it only takes a little bit of patience before you find the best rate for you.