Hardship Recovery

Lower Your Monthly Mortgage Payment With These Simple Refinance Tips

Want to refinance your mortgage so you can take advantage of some of the lowest interest rates in years? The following tips can help you get the best rate on your loan.


This relief program will direct deposit a short term loan into your bank account.

Review the terms of this funding closely before accepting these funds.

Don’t Cash Out

Some people like to use some of their home equity as part of a new loan via a cash-out refinance. While you could put that cash to use, it will increase the loan-to-value ratio of your mortgage, which could increase your interest rate.

The Shorter the Loan, the Better

Don’t let lower monthly payments with longer loan terms fool you into a higher interest rate. If you can afford to pay more each month, a shorter refinance mortgage can net you a lower interest rate, which can lead to spending less over the loan’s life.

Talk to as Many Lenders as You Can

Make the most of your refinancing journey by shopping around with as many lenders as possible. Even if the first lender you speak to has a great offer, don’t accept it until you’ve seen what its competitors’ numbers are.

Freddie Mac analyzed the benefits of comparison shopping and found the following:

  • Comparing two lenders saved consumers an average of $1,500 over the life of the mortgage.
  • Comparing five lenders led to $3,000 average savings.

As you can see, it pays to take your time and see what’s out there. And this is especially true now with record low interest rates.

Make Your Credit Score as High as Possible

Is your credit score so low that you haven’t checked your credit report in a long time out of fear? If so, you’ll have to get over that fear and see where you stand so you can create a plan to make your score more attractive to lenders.


If you need financial assistance such as money to pay bills, a personal loan, or debt relief. See what resources are available to help you today.

You can begin this process by getting your free credit report. Once you have it, scan it up and down and look for any errors. The more mistakes you find and get removed, the higher your score will be, and the lower the refinance interest rate you can secure.

Removing errors from your credit report is just one way to boost your score. Another is to increase your available credit by giving your creditors a quick call.

Why would you want to do this? It’s not so you can instantly start spending more. Instead, it’s to lower your credit utilization ratio, which makes up a big chunk of your credit score.

Although you could also pay down your debts to lower your ratio, that’s not always a quick option if you’re low on cash, which is why calling and raising your limits may be your best bet.

While a lower credit utilization ratio (aim to keep it below 25 percent) can improve your score, this doesn’t mean you should put a freeze on your spending.

To keep your score increasing, spend smaller amounts on credit so you can pay them off monthly. Doing so makes you appear like a trustworthy borrower and a lower risk to lenders.

The less risk you present, the lower interest you can pay on your new mortgage.

Lock Your Rate

Once you find an interest rate that you like, ask your loan advisor about a mortgage rate lock. It can keep your rate from rising while the loan is being processed.

Since it could take two weeks for your loan to be finalized, a lock will give you peace of mind to know you’re getting the lowest rate even if they’re increasing.

When you consider that current rates are so low, doing a mortgage rate lock now makes more sense than ever.

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