Is Your 710 Credit Rating High Enough to Refinance your Mortgage?

Is Your 700 Credit Score High Enough to Refinance your Mortgage?

With interest rates on home loans rates falling, homeowners are flocking to lenders with hopes of refinancing their home loans at a lower interest rate and saving loads of cash in the process. On a $250,000 30 year loan, refinancing from an 8 interest rate to the record lows in the 5 range that were reported in early January, 2009 would reduce monthly mortgage payments by nearly $500. Over the course of the entire loan, this amounts to over $170,000 worth of savings.

Most people, however, will not even be able to qualify for a refinance loan and an even larger segment of the population will not be able to get approved for the best interest rates.

Having a good credit score simply isn't good enough when it comes to getting approved for the best rates on a mortgage refinancing loan. Most people consider a 720 credit score to be a good score, says Chris Freemott, president of All American Mortgage, but to get the best rates , borrowers will need a credit rating of 740 or better.

Traditionally, consumers working to raise their credit scores have been trying to find for a way to turn a low credit score into an average credit score or better. By taking credit scores below the 560 mark that many consider to be the cutoff for bad credit and increasing them to the mid to high 600s, people discovered that they were able to dramatically improve their standard of living. They were able to get approved for home loans that were previously denied to them and qualify for car loans or credit cards with reasonable and manageable interest rates.

Today, a shift has been made where it is not just those with bad credit who could see benefit from credit repair or other credit improvement services. As is evidenced by the current refinancing situation, even those with good credit scores may be able to benefit from pushing their credit scores even higher.

For those home owners who are looking to take advantage of the low interest rates, take some time to investigate a variety of lenders and shop around for the best rates. And don't get discouraged if you get rejected by one lender because there may still be another who would be more than happy to help you. And if lenders are continually turning you away or not offering the interest rates you are looking for because of your credit rating, then making use of credit repair services like those provided by Lexington Law, the trusted leaders in credit repair, may be the first step you need to take in order to accomplish your goals.